should one invest in PPF of FD for better returns, as I am looking for safe investment option?

should one invest in PPF of FD for better returns, as I am looking for safe investment options ????
I am not very much impressed with ULIP’s as they charge quite high and hence the actual invested amount becomes quite less!!

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This is the unofficial website of Indian Post office schemes which shows official schemes of Indian Post Office e.g., Public Provident Fund (PPF), RD, MIS, Kisan Vikas Patra, NSC, Time Deposits, Savings account, Senior Citizens Savings Scheme etc.

8 thoughts on “should one invest in PPF of FD for better returns, as I am looking for safe investment option?

  • September 22, 2012 at 10:02 am

    1.PPF is good interest abt 8 % , Tax benefit exists. Withdrawal difficult.
    2. Keep in Unitech, Ansal etc who r giving high interest . Safe. Enquire with them via internet.

  • September 22, 2012 at 10:02 am

    invest in PPF for safe returns.. also u can invest a small part in MF like hdfc top 200 to get higher returns..

  • September 22, 2012 at 10:02 am

    PPF or FD? I wouldn’t invest in either. Look at the volume, the volume is very small.

  • September 22, 2012 at 10:02 am

    There is no such thing as SAFE INVESTMENT. All investments carry different kinds of risk.

    In equity related investments , risk is obvious.

    Let us say , if you invest in PPF you get a tax free return of 8 %. Your principal is safe. But if real inflation is 10% , your investment is growing negatively. This risk , most people do not see.

    So ideally , you should invest in all avenues. If you are young , a major portion of your long term investment can go towards equity. As you get older, your investment in equity can come down gradually.

    Not investing in equity at all , you run the greatest risk.

    Having said this, PPF is a good avenue for tax saving. It is a good pension fund. Invest as much as you can ( max 70,000) as early as you can every year. ( before April 5th – gives you interest for full year )

    Create a corpus for retirement. After retirement you can pay Rs 500 each year to keep account alive , and withdraw the yearly interest as tax free pension.

    So do not close your PPF ever. The nominee will close it. You can keep renewing in 5 year blocks after the initial 15 years.

    For tax saving go for a combination of PPF & ELSS.

    For Insurance , go for PURE TERM COVER.

    Visit for insurance & to understand mutual funds.

  • September 22, 2012 at 10:02 am


    You rightly said that ULIPS in insurance companies carry high rate of hidden charges for instance one of them is mortality charges which are clubbed in with the plan!!. and the end of ur term u will end up making 6-7% over your investment…but than thats good if you are looking for life insurance as a major aspect and also some tax benifit!! investment in bonds and govt securities can be a slow but stedy growth option… but the best way of investment is trading in share market with little amount and constant guidance!!! if u need help call on 9743192724 i will give u a brief of what u can do!! cheers

  • September 22, 2012 at 10:02 am

    depends on the amount and for how long?
    If you are Interested for safe investment please contact us at:
    [email protected]
    I would be very glad to give you good advice.
    With respect

  • November 15, 2012 at 12:29 pm

    PPF is the best scheme for salaried person- limit is one lakh per annum ,fetches 8.8% now w.e.f dec 2011, actual profit starts when 15 years are over– keep getting it extending in blocks of 5 years . can always withdraw 50% money of last 3 years ( e.g. 50% of 4th years money can be withdrawn in 7th year and , 50% of 5th years money in 8th year and so on. interest is tax free and exempted from wealth tax too . can also take loan against . in emergency get money the next day .

  • May 31, 2013 at 5:39 pm

    I would suggest u to put in ppf and if possible start a rd in any of the banks for 6 m or 1 yr and after maturity put that amount in FD,u will be getting 9 percent interest if possible start SIP in HDFC or any of the bank based on the their performance .thank you

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