PPF VS FIXED DEPOSITS

PPF VS Fixed Deposits

The Interest Rates on Fixed Deposits may be higher than the PPF Interest Rates but what needs to consider while facilitating a comparsion in between these 2 modes of investment is that the PPF Interest is tax free whereas Tax is liable to be paid on Interest from Fixed deposits, thus if you compute the interest of Fixed deposits after deduction of tax, the effective interest is more in PPF Account received as compared to Fixed Deposit. Moreover, not only is the interest Tax free but the Investment made is also eligible for deduction under section 80C up to a specified limit.