Public Provident Fund was introduced by the ministry of finance and is best tax efficient policy in India. It is a tax – free saving avenue for a fixed period of time. The scheme encourages savings with minimum deposit requirements at very affordable price.

The key features of the policy

  • Tax – free returns
  • Low risk
  • Easily accessible
  • Long term investments
  • Retirement planning


On any long – term capital gains from the sale of an asset, an investor need not pay any tax if the amount is spent on specified Capital gains Bonds under section 54EC.

Key Features of the bond

  • AAA rated
  • Interest is taxable
  • Lock in of 3 years
  • Non – transferable


Fixed deposits are a traditional form of investment preferred by investors with low risk appetite for a term varying from 7 days to 10 years with the pay of interest for that time period at the present rate.
Term deposits offer various benefits

  • Guaranteed returns
  • Low risk
  • Higher interest rates for senior citizens
  • Loan facility
  • Higher interest rates than saving accounts


Time Deposit account has a date of maturity. It is an interest bearing account with a penalty for withdrawal before the maturity. Time Deposits offer guaranteed returns with low risk mechanism and have specified conditions for withdrawal which includes giving a notice prior to 30 days of the withdrawal.