Investment Scheme: PPF or FD know which is the most beneficial to invest in

A good investment can give you good returns in a short period. Many people in the country are investing in everything from bank FDs, and government savings schemes to mutual funds, stock markets, and cryptocurrencies. It is worth noting that money invested in mutual funds, the stock market, and cryptocurrencies is subject to market risks. The returns on the money invested in these sectors are determined by the behavior of the market. This is one of the major reasons, why most of the people in the country invest their savings in such a place where they are not exposed to any kind of market risk. When it comes to investing in safe investment options. In such a situation, most people prefer to invest in PPF and FD. In this episode, let us know which is more beneficial to invest in PPF or FD.

Public provident fund
Public Provident Fund is a small savings scheme run by the government. In this scheme, the government fixes the interest rates every quarter. You can invest in PPF for 15 years.

A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in this scheme. At present, you are getting an interest rate of 7.1 percent for investing in PPF. By investing in this scheme, you also get an exemption in income tax.

FD
At present, inflation is increasing rapidly all over the world. India is also not untouched by this. For this reason, to reduce the rate of inflation in the country, many banks are offering higher interest rates on FDs. Different banks give different rates of interest on the money deposited in FD.

PPF Vs FD
If compared to PPF and FD, then in the Public Provident Fund scheme, you get an interest rate based on compounding. Whereas in FD, the interest rate is offered based on either of the two methods, simple or compounding. FD is a good option for short-term investment. Whereas for long-term investment, you can invest in PPF.

(PC: iStock)