PPF has a 15-year tenure and offers a fixed interest rate, which is currently around 7.1% per annum, while gold bonds have an eight-year tenure with annual interest rate of 2.5%, payable semiannually. Contributions to PPF qualify for tax deductions of up to ₹1.5 lakh per year, and maturity amount is tax-free, whereas interest earned on gold bonds is taxable.