NPS — National Pension System
Banking & savings term
NPS is a market-linked retirement scheme where you invest until age 60, then take part as a lump sum and use the rest to buy a pension (annuity).
It offers an extra ₹50,000 deduction under Section 80CCD(1B), over and above 80C. Returns depend on your equity-debt mix; at 60 you can withdraw up to 60% tax-free and must annuitise at least 40%.
More banking & savings terms
Fixed DepositAn FD is a deposit that locks a lump sum with a bank for a fixed term at a fixed interest rate, paying more than a savings account.Recurring DepositAn RD lets you deposit a fixed amount every month for a set term at a fixed interest rate — a disciplined way to save without a lump sum.PPFPPF is a 15-year government savings scheme with tax-free interest, a deduction under 80C, and complete capital safety.EPFEPF is a retirement savings scheme for salaried employees, where you and your employer each contribute 12% of basic pay every month.Repo RateThe repo rate is the interest rate at which the RBI lends to commercial banks — the benchmark that drives loan and deposit rates across the economy.Compound InterestCompound interest is interest calculated on both the original principal and the interest already added — so the balance grows faster over time.