PPF vs FD Calculator — Compare Returns Tax and Liquidity
Compare PPF and Fixed Deposit returns side by side. See which gives better post-tax returns over 5 10 and 15 years.
PPF at 7.1% and bank FD at 7% seem similar on surface but differ dramatically in post-tax returns. PPF interest is completely tax-free while FD interest is taxed at your income tax slab rate. For someone in the 30% tax bracket: PPF effective return remains 7.1% while FD effective return drops to 4.9%. Over 15 years this difference compounds to lakhs in extra wealth from PPF.
Calculate Now
Fixed Deposit Calculator
Key Information
| Parameter | Details |
|---|---|
| PPF Interest Rate | 7.1% (tax-free) |
| FD Interest Rate | 6.5% - 7.5% (fully taxable) |
| PPF Lock-In | 15 years |
| FD Lock-In | 7 days to 10 years |
Compare PPF and FD returns
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
PPF vs FD returns over 15 years?
Rs 1.5 lakh annual investment for 15 years: PPF at 7.1% (tax-free) = Rs 40.68 lakh maturity. FD at 7% (30% tax bracket effective 4.9%) = Rs 33.97 lakh. PPF gives Rs 6.71 lakh MORE in your hand due to tax-free compounding. The gap widens with higher tax brackets and longer durations.
When is FD better than PPF?
FD is better when: you need money within 5 years (PPF has 15-year lock-in). Your income is below taxable limit (FD interest effectively tax-free). You need flexibility to choose tenure. You want monthly income (FD monthly payout). Senior citizens get 0.25-0.50% extra on FD plus higher TDS threshold.
Can I invest in both PPF and FD?
Yes and this is often the best strategy. Use PPF for long-term tax-free wealth building (Rs 1.5L/year for 80C). Use FD for short-term goals emergency fund and monthly income needs. PPF handles your 15-year+ goals while FD handles 1-5 year goals. Both together create a balanced safe portfolio.
Related Calculators
Last updated: March 2026