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Investment Comparator

Compare FD, PPF, SIP, RD, NPS, and Savings Account side-by-side with your actual numbers and tax bracket.

Investment Mode
Total Invested: ₹12,00,000
Rates used: FD 7.0%, PPF 7.1%, SIP 12% (equity), RD 6.8%, NPS 10%, Savings 4%
Comparison Results — Sorted by Post-Tax Return
Best Post-Tax Return
1
PPF (Public Provident Fund)
Government-backed, 7.1% EEE — fully tax-free
Nil
Low
Pre-tax Value

₹32.16L

Tax Payable

Nil

Post-tax Value

₹32.16L

Effective CAGR (post-tax): 3.95% p.a.
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15-year lock-in (partial withdrawal from year 7). EEE — tax-free at all stages. Note: PPF maturity extended to 15 years.
2
SIP — Equity Mutual Fund
12% projected CAGR, LTCG 12.5% on gains above ₹1.25L after 1yr
High
High
Pre-tax Value

₹23.23L

Tax Payable

−₹1.25L

Post-tax Value

₹21.99L

Effective CAGR (post-tax): 6.24% p.a.
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LTCG exempt up to ₹1.25L/year (held > 1 year). Returns are projected, not guaranteed. Historical Nifty 50 CAGR ~12%.
3
NPS Tier 1
10% projected returns, 60% tax-free at maturity
Low
Very Low
Pre-tax Value

₹20.66L

Tax Payable

−₹99.1K

Post-tax Value

₹19.42L

Effective CAGR (post-tax): 4.93% p.a.
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60% corpus tax-free at 60. 40% mandatory annuity (pension income, taxable). Locked till age 60.
4
Fixed Deposit
Bank FD at 7.0% p.a., interest taxed at slab rate
Nil
Medium
Pre-tax Value

₹17.41L

Tax Payable

−₹1.08L

Post-tax Value

₹16.33L

Effective CAGR (post-tax): 3.13% p.a.
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Interest taxable at 20% slab. TDS applies above ₹40K/year.
5
Recurring Deposit
Bank RD at 6.8% p.a., quarterly compounding
Nil
Medium
Pre-tax Value

₹17.28L

Tax Payable

−₹1.06L

Post-tax Value

₹16.22L

Effective CAGR (post-tax): 3.06% p.a.
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Interest taxed at 20% slab rate. Quarterly compounding.
6
Savings Account
4% p.a., instant liquidity, interest fully taxable
Nil
High
Pre-tax Value

₹14.77L

Tax Payable

−₹55.5K

Post-tax Value

₹14.22L

Effective CAGR (post-tax): 1.71% p.a.
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Interest above ₹10,000/year taxable. Best for emergency funds, not long-term investing.
⚠️ Disclaimer: Returns for equity instruments (SIP) are projected based on historical averages and are not guaranteed. PPF and NPS rates are current government rates and may change. This comparison is for educational purposes — consult a financial advisor before investing.
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Expert Reviewed
Fact-checked by InvestioHub Team, Financial Systems Experts

About Choosing the Right Investment for Your Goals

Understanding the post-tax, post-inflation real returns of each instrument is the key to smarter investing.

Why Post-Tax Returns Matter More Than Pre-Tax Returns

Comparing investment returns without considering taxes is misleading. An FD at 7% becomes ~4.9% after 30% tax. PPF at 7.1% remains 7.1% (EEE status). SIP equity at 12% becomes ~10.5% after LTCG. The order of investments changes completely when you apply your actual tax bracket — always compare post-tax CAGR.

Key Factors Beyond Returns

  • Liquidity: SIPs can be redeemed anytime; PPF is locked for 15 years; NPS is locked till 60.
  • Risk: FD/PPF/RD are risk-free; SIP returns fluctuate with markets.
  • Goal alignment: Match lock-in periods to your actual financial goals.

Questions & Answers

Which is better: FD, PPF, or SIP for long-term investing?

For long-term investing (10+ years), SIP in equity mutual funds typically wins with ~10.5% post-tax CAGR (after 12.5% LTCG on gains above ₹1.25L). PPF is second-best for tax-saving investors at 7.1% completely tax-free. FD is the safest but suffers from full interest taxation, making it less efficient for high tax-bracket investors over the long term.

How does your tax bracket affect investment returns?

For a 30% tax bracket investor, FD effectively returns only ~4.9% post-tax (from 7%) while PPF returns the full 7.1% tax-free. The gap widens over time due to compounding. SIP equity is also tax-efficient with only 12.5% LTCG (compared to 30% slab for FD interest), making equity SIP significantly more efficient than FD for high-income earners.

Is PPF better than NPS for retirement?

It depends on your age and goal. PPF (7.1% EEE) is fully tax-free but limited to ₹1.5L/year and has a 15-year lock-in. NPS (10% projected returns) allows higher contributions, has additional ₹50K tax deduction under 80CCD(1B), but 40% must be used for annuity at maturity (only 60% is tax-free). For pure tax-free corpus, PPF wins; for larger accumulation with additional deductions, NPS complements PPF.