PPF: 7.1% — stays 7.1% (tax-free) FD: 7.0% — drops to ~4.9% after tax (30% slab) The headline rates look similar. The money in your pocket isn't.
Tax-saver FD (5 yrs):~₹9.5L PPF (15 yrs):~₹40.7L tax-free ELSS (15 yrs): ~₹74L* (market-linked) *Not guaranteed — illustrative at ~13% historical category average.
PPF (15-yr lock-in):Partial withdrawal from Year 7 Tax-saver FD (5-yr lock-in): ZERO withdrawal — even in a medical emergency Shorter lock-in ≠ more flexible.
Zero risk priority → PPF, 10+ yr horizon, growth → ELSS, Want both? → Split it Common approach: 60% PPF + 40% ELSS (adjust to your risk comfort)
NiveshKarlo.com · Personal Finance in Plain Hindi-English