Bank FD vs EPF vs PPF: Which is giving best returns?

While the Centre is yet to declare the fresh return rate for small savings schemes like PPF, SCSS Sukanya Samriddhi Yojana soon, it had kept the interest rates on these or post office schemes unchanged in the last quarter.

ET Now Digital

Updated Mar 25, 2022, 06:46 IST

Bank FD vs EPF vs PPF: Which would give best returns?

New Delhi: Choosing between investing in EPF, PPF and Bank FDs has always remained a tough choice for many long term investors. Recently, the Employees' Provident Fund Organisation (EPFO) also slashed the PF interest rate from 8.5 per cent in 2020-21 and 2019-20 to 8.1 per cent in 2021-22, the lowest in over 4 decades.

PPF Interest Rates

For the last quarter of FY 2021-22, the interest rate on Public Provident Fund (PPF) will continue to yield 7.10 per cent. The Senior Citizens Savings Scheme (SCSS) will continue to earn 7.40 per cent, and post office time deposits will get a 5.5-6.7 per cent return. Sukanya Samriddhi Yojana pays 7.6 per cent annually.

The interest rates is applicable for the period January 1, 2021, to March 31, 2022.

Bank FD Interest rates

SBI FD interest rates

For deposits less than Rs 2 crore and FD tenure of 2 year to less than 3 years, SBI has kept the interest rate at 5.20 per cent, for 3 year to less than 5 year at is 5.45 per cent. Meanwhile, for FD tenure of 5 years and up to 10 years, the interest rate is 5.50 per cent with effect from February 15, 2022.

HDFC Bank FD interest rates

HDFC Bank has hiked interest rates on FDs worth less than Rs 2 crore by 5-10 basis points. The bank offers 5 per cent interest rate on 1-year fixed-rate deposits, 5.45 per cent rate on 3-year to 5-year fixed-rate deposits. These rates are effective from February 14, 2022.

Bank FD, EPF, PPF Interest rate comparison

EPF - 8.10 per cent

PPF - 7.10 per cent

HDFC Bank FD - 5.45-5.60 per cent

SBI FD (3-5 years) - 5.45-5.50 per cent

POTD(5 years) - 6.70 per cent

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