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RD vs PPF — short-term flexibility or long-term guarantee?

RD suits shorter savings goals with full flexibility at maturity. PPF locks in for 15 years but is tax-free and typically higher-yielding. Compare both on the same monthly/annual contribution.

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RD Calculator vs PPF Calculator15-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

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How each one actually works
Recurring Deposit (RD)

A fixed amount deposited with a bank every month for a fixed tenure, at a fixed interest rate.

PROS
Builds a savings habit through a fixed monthly commitment
Guaranteed return, same safety profile as FD
Lower entry amount than a typical FD
CONS
Interest is taxable at your slab rate
Premature closure usually reduces the effective rate
Return capped at the fixed rate, same as FD

Best for: Building a savings habit for a short-to-medium-term goal when you don't have a lump sum to deposit upfront.

PPF (Public Provident Fund)

A government-backed, long-term savings scheme with a 15-year lock-in, a capped annual contribution, and fully tax-free interest and maturity.

PROS
Fully tax-free — contribution, interest, and maturity (EEE status)
Government-guaranteed, effectively zero credit risk
Rate is typically higher than most bank FDs
CONS
15-year lock-in with only limited partial withdrawal after year 7
Annual contribution capped (currently ₹1.5 lakh)
Rate is revised quarterly by the government and can fall

Best for: The guaranteed, tax-free core of a long-term goal like retirement, where you can commit to the lock-in.

Questions
Can I withdraw from PPF before 15 years?

Partial withdrawal is allowed from the 7th year onward under specific rules, but PPF is fundamentally built as a long-term lock-in — it's not a substitute for an RD's short-term flexibility.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.