PPF vs EPF vs NPS

India's retirement triad. Same monthly contribution, three projected outcomes.

₹12,500
₹
25 years
yrs
50%
%

NPS lets you choose up to 75% equity. Higher equity = higher expected return, more volatility.

PPF
7.1% guaranteed
Final corpus
₹1.03 Cr
Tax on contribution80C ✓
Tax on interestExempt
Tax on maturityExempt
Lock-in15y (extendable)
EPF
8.25% (FY 2024-25)
Final corpus
₹1.23 Cr
Tax on contribution80C ✓
Tax on interestTaxable above ₹2.5L/yr*
Tax on maturityExempt (5+ yrs)
Lock-inJob-tenure linked
NPS
Equity + debt blend
Final corpus
₹1.3 Cr
Tax on contribution80C + 80CCD(1B) extra ₹50K
Tax on interestExempt during accumulation
Tax on maturity60% tax-free; 40% annuity
Lock-inTill age 60
How to choose
PPF: safest, tax-magical, but capped at ₹1.5L/yr. EPF: highest guaranteed rate, only if salaried + auto-deducted. NPS: highest expected long-term return, partial annuity at maturity. Most well-off Indians use a mix of all three.

* EPF interest on contributions exceeding ₹2.5 lakh/year is taxable per Finance Act 2021.