Post Office FD vs PPF: There are many government schemes where you can deposit your money. Here you will get the benefit of very good interest. Out of these government schemes, Post Office Fixed Deposit Scheme (Post Office FD) and Public Provident Fund (PPF) are such schemes in which you also get a very good interest rate. You can open your account in these schemes by going to any bank or post office.
Saving is very important for everyone. Only with our saved money, we can meet our needs properly during emergency. In such a situation, there are many government schemes where you can deposit your money. Here you will get the benefit of very good interest. Out of these government schemes, Post Office Fixed Deposit Scheme (Post Office FD) and Public Provident Fund (PPF) are such schemes in which you also get a very good interest rate. You can open your account in these schemes by going to any bank or post office. Let us also take a look at the features of both the schemes.
Public Provident Fund (PPF) Scheme
Public Provident Fund (PPF) scheme is one of the most preferred investment option. This is a scheme in which you can invest your money for the long term. Apart from this, you also get the benefit of discount. At present, interest rate is being offered on PPF account at 7.1 per cent per annum.
Post office FD
The post office FD scheme is similar to the FD scheme offered by banks. In this, you can deposit your money for a fixed time. You are given a guaranteed return on your deposited money. On the other hand, depositors are currently getting 6.9 per cent returns on the FD scheme of the post office. At the same time, the interest rate for keeping money for two and three years has been kept at 7 percent and for depositing money for 5 years, the interest has been kept at 7.5 percent.
What to invest your money in
Investors can invest their money in either the post office FD scheme or the Public Provident Scheme. If you want to deposit your money somewhere for a long time, then you can deposit your money in PPF scheme. However, the lock-in period in this scheme is 15 years. Whereas investing money in FD is easier. However, the interest you get in FD is taxable.
