I want to know about PPF and if it is compared with RD which one is benificial. There is any age limits because, I want to open this account for my mom. If there are any other investment options let me know.
Printable View
I want to know about PPF and if it is compared with RD which one is benificial. There is any age limits because, I want to open this account for my mom. If there are any other investment options let me know.
I think the main difference is tax rebate - which you get in PPF and not in RD. PPF is a long term investment 15 years, while RD is depend on the time duration you have selected.
Recurring Deposit rates remain constant irrespective of market rate fluctuations. PPF rates changes by govt.Quote:
Originally Posted by Raghuraj
Yes PPF have long period.16 to be precise .
Also rd doesnt get any rebate in tax.
But both comes under different category it depends whether person plan to use the money in short term or not.
Also if one have business and have lot of cash in hand.Than ill suggest depositing direct cash to ppf as that is worth investment.
PPF is best (even ignoring the section 80C tax benefit). The tax-free interest of 8% from PPF is much better than 6.25% taxable interest from RD.
On contrary if you count 80c tax benefit a person paying tax at 10% gets interest of 18%.8000 on 1 lakh investment plus 10000 rs saved as tax total 18000 on 1 lakh.Plus in long term compounding powers multuply returns with tax free return.Quote:
Originally Posted by Manish_Kumar
But as said RD is different and shouldnt be compared with ppf.
RD is done with 2-3 years horizon ad ppf is very long investment.