PPF vs. FD: Balancing Savings for 35-Year-Old Parents

• PPF offers 7.1% tax-free interest, is eligible for tax deductions, and is ideal for long-term goals like children's education or retirement due to its 15-year lock-in and government backing.
• Fixed Deposits offer 6.25-7.3% interest, but it's fully taxable; they provide flexibility for short-to-medium term goals (2-5 years) like home renovations or car replacements due to easier access.
• For a 35-year-old with kids, a mix of PPF and FDs is recommended: PPF for long-term, committed savings and FDs for accessible funds needed within 2-5 years.
• PPF generally provides better post-tax returns over the long term, especially for those in higher tax brackets, while FDs are suitable for liquidity and near-term financial needs.

Why It Matters: Helps 35-year-olds with kids make smart savings choices.