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Which scheme is beneficial for higher returns of PPF or NPS, in which money will be safe and will be exempted from tax, know details

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PPF and NPS are two better options for investing money. Both schemes are voluntary restless schemes. They get good returns.

Investment schemes

To make the future safe, it is important to invest the money in the right place. Although many government schemes exist for this, both PPF and NPS are quite popular among them. These are both voluntary contribution options. There is also a tax rebate with better returns, but which is more beneficial in both the schemes, let us know the complete details.

What is PPF account

Public provident fund i.e. PPF account is considered as a better option to add big amount from small savings. In this, under Section 80C of income tax, when the exemption in the limit of 1.5 lakh rupees is available. This is a guaranteed return investment.

Features of NPS account

NPS i.e. National Pension System is a scheme operated by PFRDA. It has equity exposure. At the age of 60, you also get a lump sum. The age of a person should be between 18 and 65 years to invest in the scheme. There are two options available for investing in NPS. First tier-1 and second tier-2. In this scheme, an account can be opened with Rs. 1,000.

Difference between PPF and NPS

If a person invests 100 rupees in NPS, then he will get a return of up to 10 percent. The same will be the annual return at the rate of 7.1 percent on depositing Rs 100 in PPF. Hence investing in NPS is more beneficial as it will get 2.9 percent more profit than PPF. Similarly, under PPF calculator, if a person deposits 1.5 lakh rupees or 12,500 rupees per month every year in PPF account and gets a return of 7.1 percent. So after 30 years, his maturity amount will be Rs 1,54,50,911.

Whereas in NPS, if a person deposits Rs 1.5 lakh annually or Rs 12,500 monthly and keeps the annuity at 40 per cent, then he can withdraw Rs 1,70,94,940 and from the remaining Rs 1,13,96,627 he gets about Rs 56,983 every month. Will get pension According to experts, if you take a little risk, then there is a possibility of getting higher returns in NPS than PPF.

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Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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