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Public Provident Fund vs National Pension Scheme ( PPF vs NPS)


PPF vs NPS. Which is better?

The Public Provident Fund and the National Pension Scheme both are good investment options.

Both provide us good benefits and returns .

But if you want to choose between NPS and PPF ,people get confuse.

So,here is the detailed comparison between PPF vs NPS.

Which option is more beneficial PPF or NPS ?

If you invest in NPS,then the money also deposited in equity ,it means you can easily get 10% returns annually if you invest for long terms.

On the other hand ,PPF provides you a return of 7.1% annually .

There is a difference of 3% returns which can make a big difference in amount invested for a long term.

How PPF will make 1 crore ?

If you invest 12500 INR monthly i.e.1,50,000 per year .

The return provided by PPF is 7.1%.
If you continue investing for 30 years then amount you will get is 1.54 crores.

The amount that you get from PPF is exempted from tax.

How NPS will make 1 crore?

On the other hand,if you invest in NPS monthly amount 12,500 then at the end of maturation period ,you will be paid 1.71 crores approximately.

Out of which 1.14 crores are for pension purposes which provide you pension of 57,000 per month.

Which is safer ?

The PPF scheme provides you a fixed return anually .

It does not related to any market related phenomena.

Whereas the return in NPS are dependent on the performance of Pension Fund Managers.

So,PPF is more safer in this term.

Which is the best retirement plan?

PPF can be used for any purpose for savings but NPS is specially designed for pension purposes.

TheNPS account only matures at the age of 60 years.

Written By Deepak Kumar

Must Read – Every detail of National Pension Scheme 

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