PPF vs 5-year Post Office FD: Does tax-free 7.1% beat taxable 7.5%? Check calculations
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓PPF currently offers 7.1 per cent interest, while the five-year Post Office Time Deposit offers a higher rate of 7.5 per cent.
- ✓Many investors get confused between these government schemes.
- ✓While the deposit rate looks attractive, PPF interest is tax-free.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Zee Business
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
PPF currently offers 7.1% interest, while the five-year Post Office Time Deposit offers a higher rate of 7.5%. | ChatGPT generated/Representative Image
PPF vs 5-year Post Office FD: Does tax-free 7.1% beat taxable 7.5%? Check calculations
Both Public Provident Fund (PPF) and Post Office Fixed Deposits are safe investment options as they are not linked to the markets. Both are government-backed savings schemes, and both offer interest, but there is one difference that can make choosing between them confusing. PPF currently offers 7.1 per cent interest, while the five-year Post Office Time Deposit offers a higher rate of 7.5 per cent.
At first glance, the five-year deposit looks more attractive. After all, it offers a higher interest rate. But the full picture changes when income tax is taken into account. Interest earned on PPF is tax-free, while interest from a Post Office Time Deposit is taxable according to the investor's applicable tax rules.
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