5 min read
Both build retirement money with tax benefits, but NPS is market-linked with an annuity at the end, while PPF is fixed and fully liquid at maturity.
| Factor | NPS | PPF |
|---|---|---|
| Return | 8–10% (market) | ~7.1% (fixed) |
| Extra tax benefit | ₹50k under 80CCD(1B) | Within 80C |
| Maturity | 60% lump + annuity | Fully withdrawable |
| Risk | Moderate | None |
| Liquidity | Locked till 60 | Partial after year 7 |
Verdict
Use both: PPF for guaranteed tax-free returns, NPS for the extra ₹50k deduction and higher growth potential.
Sources
Reviewed against primary sources. Rates and rules change — confirm current figures with the official source before acting.
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