Just few days back we have a post about comparison of PPF and Bank deposits for 80C benefits and compared few features of both the products.This post can be considered as an extension of that post.
Here I have tried cumulative flow of both PPF and Bank fixed deposits( with tax liability of different tax brackets).
Assumptions:
- Returns of PPF and Fixed deposits are considered to be 9% for next 15 Yrs.
- Rs 1 lakh invested in both PPf and bank deposits on 01st April of each year for next 15 yrs. and value shown is as on 31st march of each year.
- For PPF compounding frequency comes to be annual while for deposits it comes to be quarterly and with this frequency calculations have made.
- In case Of bank deposits,its assumed that tax is paid off annually as per tax bracket.
The Final sum comes as below:
WE HAVE INVESTED RS 1 LAKH /YR FOR 15 Yrs.
Total Invested: Rs. 15 lakh.
| Instrument | Maturity Value |
| PPF | 32,10,336 |
| FD with no tax liability | 32,88,213 |
| FD with 10% Tax bracket | 29,95,263 |
| FD with 20% tax Bracket | 27,32,367 |
| FD with 30% Tax bracket | 24,96,237 |
The result of cumulative flow is as follow…
For numerical values,click on the” Show/Hide Data Table” above.
We can conclude that PPF is beneficial investment but will have low liquidity problem..but can be a good tool for long term retirement saving.
Related Posts
What If I was Invested Rs.3000/- Per Month In PPF Since Yr.2000-01:
Integrated Investment Across Mutual Fund,PPF And Gold:
Case Study – Bank Deposits Or PPF Which One To Select For 80C Benefits:
Systematic investing Vs Value averaging:
10% IFCI NCD Issue Oct-2014:
Which Is The Best Investment Option For Investing Money For Short Term Like 50 Days:
please give real estate v/s sensex v/s gold returns since 2oo1 to protect against inflation
rajesh
please give real estate v/s sensex v/s gold returns since 1981 to protect against inflation
rajesh
Hi,Thanks for your suggestion.
Will try sometimes in future..
But it looks difficult to generalise the real estate prices across different cities.
thank you for comparison of PPF and FD
Thank You Sir.
I think, your efforts are worth of appreciation.
Preethi.
Thanks Preethiji… words of professor has its own significance..