{"id":1271,"date":"2016-12-27T17:50:51","date_gmt":"2016-12-27T17:50:51","guid":{"rendered":"https:\/\/www.indusind.bank.in\/iblogs\/?p=1271"},"modified":"2025-09-10T10:59:03","modified_gmt":"2025-09-10T10:59:03","slug":"4-key-differences-tax-saver-fixed-deposit-ppf","status":"publish","type":"post","link":"https:\/\/www.indusind.bank.in\/iblogs\/investment\/4-key-differences-tax-saver-fixed-deposit-ppf\/","title":{"rendered":"4 Key Differences between Tax Saver Fixed Deposit and PPF"},"content":{"rendered":"\n

In this unpredictable and expensive world, it is important to have a practical financial map in place. Two of the best investment options are a Tax Saving Fixed Deposit<\/strong> and a Public Provident Fund. Once you open an FD account or a PPF, your money not only remains safe, but also multiplies along with earning tax benefits.<\/p>\n\n\n\n

But which investment option should you select? Here’s a list of differences between a Tax Saver Fixed Deposit<\/strong> and a Public Provident Fund account to help you decide.<\/p>\n\n\n\n

The Maturity Period<\/h3>\n\n\n\n

One of the major differences between the two financial plans is their maturity period. The maturity period for Tax Saver Fixed Deposit is 5 years (short-term investors) and for PPF it’s 15 years (long-term investors).<\/p>\n\n\n\n

The Interest Rate<\/h3>\n\n\n\n

The interest rate for FDs is decided by the bank, whereas the interest rate for PPF is decided by the government. Therefore, the interest amount that you could earn from a Tax Saver Fixed Deposit<\/strong> would differ from bank to bank. The current rate (2016-2017) for PPF is 8.1%. Indus Tax Saver Scheme’s interest rate is 7% and the annualised yield rate is 8.3%.<\/p>\n\n\n\n

Investment & Withdrawal Limit<\/h3>\n\n\n\n

While there’s no maximum ceiling to invest in a standard fixed deposit<\/strong> account, you can invest up to Rs. 1,50,000 in a PPF and a Tax Saver FD account. As for the withdrawal limit, you can withdraw a limited amount from a PPF account after completing 5 years of maturity period, but not from tax saving FDs.<\/p>\n\n\n\n

Tax Benefit & Liability<\/h3>\n\n\n\n

You can claim the amount invested in both the schemes as deduction under Section 80C while filing your tax returns. Interest earned from PPF is considered as a non-taxable income, but Tax Saver FD account holders would have to pay tax on the interest earned according to their income tax slab rate.<\/p>\n\n\n\n

Both are safe investment schemes to park your hard-earned money. Although, the deciding factor is – what kind of an investor are you? If you can lock your money in a long-term investment plan, then open a PPF account. But if you need a short-term investment scheme, then a Tax Saver Fixed Deposit account<\/a> is ideal for you. As PPF is a government investment scheme, the procedure and the features are standard. In case of FDs, a personal relationship with banks like IndusInd Bank always pays off in the shape of flexible tenures, special rates, customised services and other attractive benefits.<\/p>\n","protected":false},"excerpt":{"rendered":"

In this unpredictable and expensive world, it is important to have a practical financial map in place. Two of the best investment options are a Tax Saving Fixed Deposit and a Public Provident Fund. Once you open an FD account or a PPF, your money not only remains safe, but also multiplies along with earning…<\/p>\n","protected":false},"author":13,"featured_media":1274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\n\n\t\n","_links":{"self":[{"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/posts\/1271"}],"collection":[{"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/comments?post=1271"}],"version-history":[{"count":10,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/posts\/1271\/revisions"}],"predecessor-version":[{"id":19625,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/posts\/1271\/revisions\/19625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/media\/1274"}],"wp:attachment":[{"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/media?parent=1271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/categories?post=1271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indusind.bank.in\/iblogs\/wp-json\/wp\/v2\/tags?post=1271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}