Choosing the Right investment plan between EFP, PPF and bank FDs has always been a bemusing and perplexed task for numerous long- term investors.
So for such investors, here are some point mentioned about these investment plan that will provide you a detail information regarding these plans so that before investing you do not have any problem in choosing one of these.
EPF
- As you already know the EPF is retirement benefit scheme in which its investor get interest on funds deposited in these account.
- The interest is calculated on compound interest on the monthly basis and at the end of the financial year it gets credited.
- Also, the interest that one receives is exempted from taxes but it is not same after the retirement.
- Currently in 2023 the EPF rate stands at 8.50% per annum.
PPF
- The PPF is one of the most popular government assisted saving schemes in India.
- The PPF is compounded on an annual basis and offers an assured risk- free return.
- Also the maturity amount that one gets is tax- free.
- Currently in 2023 the PPF rate stands at 7.1%.
Also Read :-Happy 75 th Indian Army Day – Know Why it is celebrated on 15 January, History and Importance
Bank FDs
- Bank FDs are safe investment option that guarantees accordant interest rates with many interest payment options, income tax reduction and risk- free Market.
- Bank may use simple and compound interest to calculate interest, it depends on the tenure and the amount of the deposit.
- Bank FDs are taxable and is taxed under “Income from other sources” in IT return however after the 5 years of deposit when the amount is up to Rs 1.5 lakh each financial year qualifies for tax reduction under 80 C of the Income tax Act.
- Currently in 2023 the bank FDs rate-
1. SBI – 5 years and up to 10 years for Regular Rate is 6.25% and Senior Citizen rate stands at 7.25%.
2. HDFC – 5 years and up to 10 years for Regular Rate is 6.25% and Senior rate stands at 7.00%.
Interest Rates Comparison in 2023
EPF – 8.50%
PPF – 7.1%
SBI FD (5 – 10 years) – 6.25 – 7.25%
HDFC FD (5 – 10 years) – 6.25 – 7.00%
