Is PPF better than FD for FIRE?

PPF is tax-free (EEE) and often offers similar or better post-tax returns than FDs. For the debt portion of your FIRE portfolio, PPF is usually preferred. Tax-saving FD qualifies for 80C but interest is taxable.

Can I withdraw from PPF before 15 years?

Partial withdrawal is allowed from year 7 for specific purposes. Loan against PPF is possible from year 3. FD offers full liquidity (with penalty for premature withdrawal) or at maturity.

What about tax-saving FD?

Tax-saving FD has 5-year lock-in and qualifies for 80C. Interest is taxable. PPF interest is tax-free. For long-term FIRE savings, PPF typically wins on post-tax returns.

PPF vs FD for Savings and FIRE

PPF (Public Provident Fund) and tax-saving FD (fixed deposit) both qualify for Section 80C deduction. For FIRE, the choice affects your post-tax returns and liquidity.

Quick Comparison

Factor	PPF	Tax-saving FD
Lock-in	15 years	5 years
Interest	Tax-free	Taxable
80C limit	₹1.5 lakh	₹1.5 lakh
Returns	~7–8% (govt-set)	~6–7% (bank)
Extension	Yes, in blocks of 5 yrs	No

When to Choose PPF

PPF is fully tax-free (EEE)—no tax on deposit, interest, or withdrawal. It suits long-term FIRE savings for the debt portion of your portfolio. After 15 years, you can extend in blocks of 5 years. See PPF extension.

When to Choose FD

Tax-saving FD has a shorter 5-year lock-in. If you need 80C benefit but want slightly earlier access, FD works. Regular FDs (non–tax-saving) offer liquidity for emergency funds. For FIRE, PPF usually wins for the 80C debt bucket.

For FIRE

Use PPF for the fixed-income part of your asset allocation. Pair with ELSS and NPS for equity exposure. Compare ELSS vs PPF vs Tax-saving FD for the full 80C picture.