Key Takeaways
- PPF rates are government-set; FD rates are bank-set.
- PPF compounds annually; FDs often compound quarterly.
- FDs offer flexible terms; PPF has a long fixed tenure.
- Verify current PPF rules and FD rates before deciding.
Two stability-focused choices
If you want predictability rather than market exposure, both PPF and fixed deposits fit. The differences lie in who sets the rate, how often interest compounds, and how liquid the money is.
Comparison
| Factor | PPF | Fixed Deposit |
|---|---|---|
| Rate set by | Government (statutory) | The bank |
| Compounding | Annual | Often quarterly |
| Term | Long, fixed | Flexible |
| Liquidity | Restricted | Higher (with penalty) |
Check current figures
PPF rates and rules are statutory and change; FD rates vary by bank and over time. We do not hardcode either. Confirm current numbers with primary sources, then compare illustrative outcomes with the PPF calculator and FD calculator.
Sources
We reference primary and official sources. Rate- and rule-dependent details must be verified against the latest official information.
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Related Guides
FD vs PPF: A Practical Comparison
An FD is a flexible bank deposit for any term; PPF is a long-tenure government savings scheme with annual compounding. They serve different horizons and purposes.
bankingWhat Is a Fixed Deposit?
A fixed deposit is a deposit placed with a bank for a fixed term at an interest rate agreed at the time of booking, offering predictable returns and high capital stability.
retirementWhat Is the Public Provident Fund (PPF)?
PPF is a long-term, government-backed savings scheme where you contribute each year and earn annually compounded interest at a rate set by the government. Its rules are statutory and change over time.