Bank FDs and a Public Provident Scheme (PPF Scheme) are one of the most popular investment options. Both these options can prove to be much better for investors. Investments made in these are completely free from market risks. In such a situation, let us try to understand where investing money in both bank FD and PPF scheme can prove to be a profitable deal for you.
Investing your money properly is very important for everyone. At this time you also have many options for investment. In which you can get very good interest by investing your money. One of these investment options is the option bank’s FD and a Public Provident Scheme (PPF Scheme). Both these options can prove to be much better for investors. Investments made in these are completely free from market risks. In such a situation, let us try to understand where investing money in both bank FD and PPF scheme can prove to be a profitable deal for you.
Features of PPF Scheme
PPF Scheme comes under Small Saving Scheme. In this, the interest rate is also updated on a quarterly basis. It is one of the most popular government investment schemes in India. You can invest your money in it for long term. You can deposit your money under this scheme over a long period of time. Also, under this scheme, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in a year.
For how many days can invest
According to the guideline, you can invest your money in your PPF account for up to 15 years. However, even after this you can continue your PPF account. You also get the benefit of tax exemption in PPF account. Under this scheme, any adult Indian person can open his account. At present, investors in this government scheme are getting the benefit of interest at the rate of 7.1 per cent per annum.
Bank FD
In the last few days, the interest rate offered on fixed deposits by both private and government banks has been increased. HDFC Bank is currently offering interest ranging from 3 per cent to 7.10 per cent on fixed deposits to its customers. At the same time, Axis Bank is offering interest ranging from 3.50 per cent to 7.75 per cent on fixed deposits to its customers. Whereas State Bank of India (SBI) is offering interest ranging from 3% to 7% to its customers.
