Evaluating safe tax-saving instruments: compare 5-year bank FDs offering guaranteed returns against the Public Provident Fund (PPF) with 15-year tax-free compounding.
Taxability of Maturity Interest
While both instruments qualify for initial Section 80C deductions up to ₹1.5 Lakhs, PPF maturity interest is completely exempt (EEE), whereas bank FD interest is taxable at your marginal slab rate.