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PPF vs Property — guaranteed government return or real estate?

PPF is fully guaranteed, tax-free and needs no active management. Property can outpace it through both rental income and appreciation, but demands real capital, a loan, and ongoing effort. Compare both on the same amount you'd actually commit.

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PPF Calculator vs Rental Property15-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

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How each one actually works
PPF (Public Provident Fund)

A government-backed, long-term savings scheme with a 15-year lock-in, a capped annual contribution, and fully tax-free interest and maturity.

PROS
Fully tax-free — contribution, interest, and maturity (EEE status)
Government-guaranteed, effectively zero credit risk
Rate is typically higher than most bank FDs
CONS
15-year lock-in with only limited partial withdrawal after year 7
Annual contribution capped (currently ₹1.5 lakh)
Rate is revised quarterly by the government and can fall

Best for: The guaranteed, tax-free core of a long-term goal like retirement, where you can commit to the lock-in.

Rental Property

A residential property purchased (often with a home loan) to generate rental income alongside potential appreciation.

PROS
Produces ongoing rental income, not just appreciation
Loan leverage lets you control an asset larger than your cash alone
A tangible asset with a well-established resale market
CONS
Vacancy periods and maintenance reduce net income below the headline rent
Illiquid — selling takes time and incurs transaction costs
Loan interest and upkeep are real, ongoing costs

Best for: Investors who want income plus appreciation and are prepared to actively manage a physical asset (or pay someone to).

Questions
Is property a safer bet than PPF since it's a real asset?

Not necessarily — property values can stagnate or fall in a given market and city, and it's far less liquid than PPF. "Real" doesn't mean "guaranteed"; PPF is the one with an actual government-backed guarantee.

Can I do both PPF and property?

Yes — most people use PPF for a guaranteed, tax-free core allocation and treat property as a separate, larger long-term bet, rather than substituting one for the other.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.