Quote Originally Posted by Manish_Kumar View Post
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.

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.