PPF vs FD Returns Calculator — Which Is Better?
PPF at 7.1% (tax-free) beats an FD at 7% (taxable). On ₹1.5 lakh/year for 15 years, PPF gives ₹40.68 lakh tax-free, while an equivalent FD gives ~₹38.3 lakh pre-tax — and the FD interest is taxable at your slab rate.
Total Invested
₹22,50,000
Interest Earned
₹18,18,209
Maturity Value
₹40,68,209
PPF interest is compounded annually. Current rate: 7.1% p.a. (Q1 FY 2025-26). Minimum lock-in: 15 years. Interest is fully tax-exempt under Section 10(11).
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Common questions about PPF vs FD Returns Calculator — Which Is Better?
Is PPF better than FD?
For long-term savings (15+ years), PPF is almost always better. PPF interest is 100% tax-free (EEE status), while FD interest is taxed at your income slab. For a 30% tax bracket, a 7% FD effectively yields only ~4.9% post-tax vs PPF's full 7.1%.
What are the disadvantages of PPF vs FD?
PPF has a 15-year lock-in (partial withdrawal only after year 7), while FDs can be broken anytime (with penalty). PPF also has a ₹1.5 lakh/year deposit cap. FDs offer more flexibility and higher limits.