In order to lead a comfortable life, we spend a lot of time working hard to earn as much money as we can by the way of putting in long hours of work, working overtime, and so forth. In order to secure one’s present and future, they have to make money even if it becomes a mundane thing to do. Earning money is on one side but saving it and investing it in the correct market avenues is another. However, when you make investments, they can either break or make your retirement plans. The right kind of investment is necessary as one puts their hard-earned money into these investments. Considering India, there are two investment options – Fixed Deposits (FDs) and Public Provident Fund (PPF). Both of these have several benefits and features and are trying to attract customers and are the most popular investment options in India.

fd apply

Listed below are market investment will suit your needs:

Lock in Period/Maturity:

A lock-in-period or maturity is when the investment reaches its peak and can be used by the customer. A fixed deposit has lock-in-period from 7 days to 10 years, Whereas, the lock-in-period for a Public Provident Fund is a minimum of 15 years. Hence, an individual can invest in one of the two according to his investment needs.

Rate of Interest:

The Government fixes the rate of interest for PPFs and only they can change it. Individual banks or NBFCs set the interest rates for their fixed deposits, and a person will be able to get a higher rate of interest from a different bank. The interest rates offered by banks mostly range from 8.5-9%. Company fixed deposits have a higher rate of interest and are more profitable than any other financial institution.

Early Withdrawal:

Withdrawing money before maturity is a service offered by both fixed deposits and PPFs. However, in the case of PPF, withdrawal is only allowed after five years, whereas for fixed deposits, the bank charges you a certain amount of fee for breaking the fixed deposit or you can also take a loan from your FD account instead of breaking it.


An emergency is something which can come at any point of time in your life. This means that you will have to take a loan in order to deal with the emergency. From the third year onwards, one can take a loan against their PPF. When you consider fixed deposits, most of the banks give 90% overdraft facility. NBFCs like Bajaj Finserv offer Loan against Fixed Deposits

Deduction in Tax:

Under Section 80C of the Income Tax Act, certain investments can be claimed by individuals. Such deductions are available for both Tax Saving Fixed Deposits and Public Provident Funds. INR 1,50,000 is the present maximum deduction available for both investments on a per annum basis.

Amount of Investment:

The highest amount of investment one can make in a public provident fund is 1,50,000. This discourages people who want to invest more than that. On the other hand, a fixed deposit does not have any such restriction on the amount of money which can be invested. People also invest crores in fixed deposits in accordance with lender’s policy.

In the end, both Fixed Deposits and PPFs are secure and a safe market investment. However, it all boils down to personal preference and which one is the right investment for you. Hence, you need to make sure that your decision to choose one of them is the right one and will give you the desired returns.

Calculate FD Maturity Amount Invest in FD Check FD Interest Rate