Investors get income tax exemption in government-run PPF and NPS accounts. Along with this, more benefits are available including taking a loan.
best investment scheme
After retirement, in order not to have a problem with money, you should inculcate the habit of saving from now on. Although many schemes are in vogue in the market, but most of the investors have faith in government schemes. If you are also one of them, then PPF and NPS can be better options for you. Both these schemes give good returns for investing money. These schemes are voluntary contributions.
Benefits of PPF account
Public Provident Fund ie PPF account is considered a better option to add a large amount from small savings. In this, under Section 80C of Income Tax, when the limit of Rs 1.5 lakh is exempted. It is an investment with guaranteed returns. Facility to take loan from PPF account is available. You can take a loan only up to 25% of the deposit amount. On availing this facility, the principal amount of the loan i.e. the principal amount has to be paid first.
NPS account is also beneficial
NPS i.e. National Pension System (NPS – National Pension System) is a scheme run by PFRDA. There is equity exposure in this. In this, at the age of 60, you also get a lump sum amount. The age of the person should be between 18 to 65 years to invest in the scheme. There are two options available on investment in NPS. First Tier-1 and Second Tier-2. In this scheme, account can be opened with Rs.1,000.
Which scheme has higher returns
If a person invests Rs 100 in NPS, then he will get 10 percent return. In the same PPF deposit of Rs 100 will give annual return at the rate of 7.1 percent. Therefore, investing in NPS is more beneficial as it will give 2.9 percent more returns than PPF. Similarly, under the PPF calculator, if a person deposits Rs 1.5 lakh or Rs 12,500 per month in the PPF account every year and he gets a return of 7.1 percent. So after 30 years his maturity amount will be Rs 1,54,50,911.
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