Where should I invest 5 lakhs ? in FD or PPF

[samkapoor77]

I am thinking of investing Rs. 5 lakhs in 5 fixed deposits of Rs. 1 lakh each for 1 year. Current fixed deposit rate is 9% per annum. Therefore, I will get a total interest income of Rs. 45,000 in a year. Is it advisable to earn like this or should I invest this amount in PPF?

[samkapoor77]

If you want regular income than you can invest in FD but interest will be taxable as per the slab in which you fall. If you are looking for long period investment and not regular returns then invest in PPF. Interest is tax-free.

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