1. What is FD vs PPF Comparison?

This calculator compares the maturity values of two popular investment options in India - Fixed Deposits (FD) from State Bank of India (SBI) and Public Provident Fund (PPF). It helps investors understand which option may yield better returns based on current interest rates.

2. How Does the Calculator Work?

The calculator uses compound interest formulas:

Where:

• \( Principal \) — Initial investment amount
• \( SBI\ FD\ Rate \) — Current SBI fixed deposit interest rate (converted to decimal)
• \( PPF\ Rate \) — Current PPF interest rate (converted to decimal)
• \( t \) — Investment period in years

Explanation: FD uses quarterly compounding while PPF uses annual compounding. The calculator shows the maturity value for both investments after the specified period.

3. Importance of Investment Comparison

Details: Comparing different investment options helps in making informed financial decisions. While FD offers liquidity, PPF provides tax benefits under Section 80C.

4. Using the Calculator

Tips: Enter principal amount in INR, current interest rates for both FD and PPF, and investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Which is better - FD or PPF?
A: It depends on your goals. FD offers higher liquidity while PPF has tax benefits and longer lock-in periods.

Q2: Are the interest rates fixed for entire period?
A: PPF rates change quarterly. FD rates are fixed for the deposit term but may vary for new deposits.

Q3: What is the minimum investment period?
A: FD minimum is 7 days, PPF has 15-year lock-in. Calculator requires minimum 1 year for comparison.

Q4: Are returns guaranteed?
A: Both FD and PPF returns are guaranteed by the government, unlike market-linked investments.

Q5: How often should I compare these options?
A: Whenever interest rates change significantly or your financial goals change.