PPF vs. NPS Scheme: If you’re planning for retirement, you’re likely looking for a scheme that offers strong returns. Currently, the government operates numerous government schemes that offer high returns along with security. We’re talking about PPF or NPS, and the question arises as to which is the best of the two, and which one can secure your retirement.
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Learn the full details of PPF
Regarding the PPF (Public Provident Fund) scheme, this scheme is universally preferred. It offers secure, tax-free income without any risk. It offers interest at a rate of 7.1%. It also offers tax benefits on the EEE basis. This means tax benefits are available on the deposit, interest, and maturity amount.
This scheme has a lock-in period of 15 years. To make the scheme flexible, it offers partial withdrawals and loan options. The minimum annual investment in this scheme is ₹500, and the maximum is ₹1.5 lakh. This scheme is designed for middle-class individuals. PPF can be an excellent option for investors seeking a stable income.
Learn the full details of NPS
NPS, or National Pension System, is a market-linked scheme. It combines equity, corporate bonds, and government securities. Over the long term, NPS has generated average returns of 9 to 11 percent. This scheme offers higher returns than PPF. Investors can choose their fund manager and asset allocation.
Young investors can expect faster long-term growth. Additionally, this scheme offers an additional ₹50,000 tax benefit under Section 80CCD (1B). At the time of retirement, 60% of the corpus is tax-free, while 40% of the corpus is used as a monthly pension, ensuring a stable income.