PPF vs NPS Calculator: Public Provident Fund (PPF) and National Pension System (NPS) are widely considered long-term investment tools. However, PPF is completely a debt instrument while NPS scheme is market-linked investment tool. … Currently, PPF interest rate is 7.1 per cent.
Considering this, which is better NPS or PPF?
PPF or Public Provident Fund is a government-backed savings vehicle which has fixed returns, set by the Government every quarter. The PPF is not a pension or retirement specific vehicle, it can also be used for other purposes. The NPS, on the other hand, is a retirement specific savings vehicle.
| Investment Period | Total PPF Investment | Total Interest Earned |
|---|---|---|
| 15 years | Rs. 1.5 lakh | Rs. 1.4 lakh |
| 20 years | Rs. 2 lakh | Rs. 2.88 lakh |
| 30 years | Rs. 3 lakh | Rs. 9 lakh |
In respect to this, is PPF a pension scheme?
The best way to save for retirement is to go for long-term small but regular investments. For this, the National Pension System (NPS) and the Public Provident Fund (PPF) are two commonly used products.
What happens to NPS if I die before 60?
Death Benefits provided under NPS
If a subscriber passes away before the maturity of the scheme, the nominee specified by the subscriber or a legal heir can encash the accumulated amount by submitting a withdrawal request,. The NPS investment gets matured once the subscriber reaches sixty years of age.
Is PPF really worth?
Investment in the PPF account for a tax deduction up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. The interest on the PPF is also exempt from tax but must be declared in the annual income tax return. The PPF maturity amount is also exempt from tax.
Is NPS risk free?
However, for an investor of the age 60 years and above, the cap is fixed at 50%. This stabilizes the risk-return equation in the interest of investors, which means the corpus is somewhat safe from the equity market volatility. The earning potential of NPS is higher as compared to other fixed-income schemes.
Can I invest more than 50000 in NPS?
To encourage investment in NPS, Section 80CCD(1B) of the Income-tax Act allows an additional deduction of Rs 50,000 over and above the Rs 1.5 lakh available under Section 80CCE. *It is assumed that contribution to NPS by the employee does not exceed 10% of the employees’ salary.
How is PPF maturity amount calculated?
Suppose, an individual pays an annual
| I | Rate of interest |
|---|---|
| F | Maturity of PPF |
| N | Total number of years |
| P | Annual instalments |
Which bank PPF is best?
The participating banks that offer a PPF account are given below.
- Bank of India.
- Union Bank of India.
- Oriental Bank of Commerce.
- IDBI Bank.
- Punjab National Bank.
- Central Bank of India.
- Bank of Maharashtra.
- Dena Bank.
How can I get maximum PPF benefit?
Benefit of Opening PPF Account Early
- 2- Schedule Monthly Investment in PPF.
- 3- Invest Lump Sum Also.
- 4- Open Account In Start of The Financial Year.
- 5- Deposit at the Start of Every Month.
- 6- Choose The Bank Which Gives Online Fund Transfer Facility in PPF Account.
- 7- Take A Loan From PPF instead of Personal Loan.
How many times can you extend PPF?
Extend the PPF account by five years without further contributions: This option allows you to extend your account maturity by 5 years. That is, the corpus will continue to earn interest. And you don’t have to make any fresh contributions during this extended five-year period.