Answer Post

FD vs RD vs PPF: what should you pick?

FD is suitable for one-time deposits, RD for disciplined monthly savings, and PPF for long-term tax-efficient wealth creation. Choice depends on lock-in comfort, return expectations, and liquidity needs.

Quick checklist

Map each product to a purpose: short-term parking, monthly saving, or retirement compounding.

  • Define your number inputs and assumptions.
  • Run at least 2 scenarios: conservative and optimistic.
  • Check inflation and tax impact where relevant.
  • Review every 6-12 months for course correction.

FAQ

Is PPF always better than FD?
Not always; PPF has lock-in and contribution limits, while FD offers more flexibility.

When is RD better than SIP?
RD may suit low-risk savers who prefer fixed returns over market-linked volatility.

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