Finance question
Should I invest in SIP, FD, PPF or NPS?
Last updated 2026-09-17
Quick answer
They solve different jobs. FD: known rate for a tenure (not one India-wide rate). PPF: long lock-in, notified 7.1% for Q2 FY 2026-27 (1 Jul – 30 Sep 2026) (changes every quarter). NPS: retirement product with annuity rules and market-linked E/C/G. SIP: market-linked, liquid (in open-end funds), return not guaranteed. Use all four calculators rather than picking a social-media winner.
Calculate your numbers
Tables below use stated assumptions. Change rate, tenure or income in the calculator for your case.
Open SIPMatch product to goal
Emergency money → FD/liquid, not SIP. 15-year retirement → NPS/PPF/SIP mix. 3-year car → FD or short debt, not a 12% equity illustration. PPF and SSY rates are in small-savings config so this page does not freeze an old DEA circular.
Formula
There is no single formula that ranks them. Compare lock-in, risk, tax treatment and whether the goal date matches the product.
Example scenarios
Character comparison (not a return league table)
| Product | Return character | Typical lock-in | Open the calculator |
|---|---|---|---|
| Equity SIP | Market-linked, not guaranteed | None in open-end funds (exit load possible) | SIP |
| Bank FD | Contractual for that deposit; rate varies by bank | Chosen tenure | FD |
| PPF (default 7.1% this quarter) | Notified, reviewed each quarter | 15-year core | PPF |
| NPS | Market-linked till exit; annuity rules at retirement | Till 60 (with exceptions) | NPS |
What changes the answer
- Horizon
- Need for liquidity
- Tax regime (80C vs new regime)
- Risk capacity
Things to consider
- New regime removes most 80C benefit, which changes the after-tax case for PPF vs taxable FD.
- NPS extra 80CCD(1B) still has its own cap in the tax config.
- PPF default from smallSavingsConfig (Q2 FY 2026-27 (1 Jul – 30 Sep 2026)). SIP/NPS returns not guaranteed.
Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.
FAQs
Yes. Emergency FD, PPF/NPS for retirement buckets, SIP for long equity goals is a common stack — still not personalised advice.