3 Replies to “what type of saving gives more benefit either recering account or ppf account ?”

  1. recurring account is a deposit that is deducted from your bank account on a periodic basis and goes into a separate account the ROI is dependent on the bank. it has life of 36 to 60 months ( sometimes 120 months). this money is used by the bank for giving loans to other loan taker of the bank.
    these cannot be clubbed under sec 80 C

    PPF is a PF fund which is covered by govt. the roi is fixed by the govt. it life is for 15 years extended by 5 years later on. this amount is used by the govt for its expenditure. this amount can be clubbed in 80C.
    and is regulated strongly. you cannot exceed 70 K per year .

    Recurring deposit benefits goals which are of short term duration ( less than 5 years)
    PPF is for long term goal like retirement. you can take loan on PPF for your daughter’s marriage own marriage on a refundable or nonrefundable basis after your finish 3 or 5 years of PPF.

  2. PPF account gives you 8 percent return per annum, which return is tax free. No recurring account will give you 8 percent as on date, besides the interest accrued on RDs, has to be added to the Income. Deposits in PPF in a given year can be tax deductible from Income up to Rs. 70,000/- hence depending on your tax bracket you save income tax in addition to interest you earn. But please note the investment in PPF is locked in for minimum seven years for each deposit made in any given financial year, so it is long term investment.

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