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Question: Just a thought .. I may be wrong being a medico… but if you invest lump- sum 15 lakh rupees in a bank and keep it for 15 years won’t you get 45 lakhs back?? Answer:”Compounding interest in the bank at 4% or so won’t get you as much as you mentioned. Bank interest rate is just 4-5% and that may also reduce in the coming years. Also your money is taxable in the bank. This is the same case in normal fixed deposits where you may be right the maturity value comes to around Rs. 47,58,253.67 (including the Interest earned of Rs.32,58,253.67) at the current going on 8% rate of interest. But remember the entire interest earned is taxable, so you will pay good taxes on that amount and since the interest earned will be high you will pay taxes at a higher interest rate by
default. So you would eventually lose out on a lot of what you may have thought you gained. Further, not everyone has Rs. 15,00,000 to immediately invest in a deposit. If you had 15,00,000 we would  63 rather suggest to invest some of it in great stocks for even betterreturns (as much as 15% a year in a very dull year and a maximum
of who knows what – 50% on average in a good bull run year) ! Best of all the profits are non taxable if held for more than a year). Then again, if you want to be safe or conservative – then PPF is a great option with an interest rate of 8.8% as of the latest revision in 2014.”