FD vs PPF vs MIS

Households still ask whether to put ₹1 lakh a year into PPF, a bank FD, or the Post Office Monthly Income Scheme. This page compounds that annual amount for 10 years at three indicative rates: PPF 7.1%, FD 7.0%, MIS 7.4%. The sketch prints about ₹14.87 lakh for PPF, ₹14.78 lakh for FD, and ₹15.12 lakh for MIS — close numbers that hide very different liquidity and tax.

The cash-flow question

A retired couple in Mysuru wants monthly cash (MIS). A 30-year-old in Ranchi wants lock-in discipline (PPF). A six-month emergency fund wants FD. IndiaKit puts the three future values on one screen so the conversation is about purpose, not about 0.3% of headline rate.

The maths on this page

Each line is an annual-contribution future value at the hard-coded rate for that product: 7.1%, 7%, 7.4% over the years you type (default 10) with ₹1,00,000 a year. MIS in real life pays out monthly income rather than accumulating the same way — the MIS figure here is a comparable compound sketch, not the postal MIS ledger.

Notified rates move. Confirm PPF/MIS on nsiindia.gov.in and FD on your bank’s site. Senior-citizen FD extras are not applied.

Tax: PPF interest is generally exempt under scheme rules; FD and MIS interest are generally taxable. That can reverse the ranking after tax.

₹1 lakh a year for 10 years, three Indian products

The Iyer family in Mysuru types ₹1,00,000 and 10 years. They see PPF ≈ ₹14.87 lakh, FD ≈ ₹14.78 lakh, MIS ≈ ₹15.12 lakh in the sketch. Grandfather still prefers MIS for the monthly credit; the granddaughter prefers PPF for tax. The page did its job by making the piles look similar.

What a bank still has to confirm

Indicative rates, annual compounding identity, MIS modelled as accumulation not as a monthly payout product. Not a postal or bank quote. Check official notifications.

Common questions

Why is MIS highest if the rate is only 7.4%?

Because this cartoon compounds 7.4% on the same annual flow. Real PO-MIS pays you income and has a different tenure and investment cap. Do not treat ₹15.12 lakh as a guaranteed MIS maturity.

Which rate is current as of today?

I have not fetched today’s notification. The page uses 7.1 / 7.0 / 7.4 as familiar planning figures. Look up the latest circulars.

Can I add Sukanya Samriddhi?

Not on this three-product screen. SSSY is a separate notified scheme with girl-child rules.