{"id":8241,"date":"2025-08-12T06:44:11","date_gmt":"2025-08-12T06:44:11","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=banking&#038;p=8241"},"modified":"2025-08-12T06:44:12","modified_gmt":"2025-08-12T06:44:12","slug":"difference-between-fixed-deposits-fd-and-public-provident-fund-ppf","status":"publish","type":"banking","link":"https:\/\/lemonn.co.in\/blog\/banking\/difference-between-fixed-deposits-fd-and-public-provident-fund-ppf\/","title":{"rendered":"Difference between Fixed Deposits (FD) and Public Provident Fund (PPF)"},"content":{"rendered":"\n<p>Fixed deposits (FDs) and the Public Provident Fund (PPF) are both popular risk-free investment options. FDs are offered by banks and provide guaranteed returns over a chosen tenure. PPF is a government-backed savings scheme with a 15-year term and tax benefits. The table contrasts FDs and PPF.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Factor<\/th><th>Fixed deposit (FD)<\/th><th>Public Provident Fund (PPF)<\/th><\/tr><\/thead><tbody><tr><td>Tenure<\/td><td>7 days\u201310 years<\/td><td>15 years (with partial withdrawal allowed after year 7)<\/td><\/tr><tr><td>Interest rate<\/td><td>Fixed at booking; varies by bank<\/td><td>Notified quarterly by the government (7.1% as of 2025)<\/td><\/tr><tr><td>Tax benefits<\/td><td>Interest fully taxable; Section 80C deduction only for tax-saving FD up to \u20b91.5 lakh<\/td><td>Interest and maturity proceeds tax-free under Section 80C<\/td><\/tr><tr><td>Liquidity<\/td><td>Premature withdrawal allowed with penalty<\/td><td>Partial withdrawals\/loans available but restricted<\/td><\/tr><tr><td>Suitability<\/td><td>Ideal for short-term to medium-term goals<\/td><td>Ideal for long-term wealth creation and retirement savings<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Choose FDs when you want flexibility and fixed returns, and choose PPF when you have a long-term horizon and want tax-free returns.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-8241","banking","type-banking","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking\/8241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/banking"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/banking"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=8241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}