Imporatnt news! Which scheme gives more returns by investing in PPF, EPF and NPS, know-here

You need to save for retirement. Therefore, the question also arises that where investing money will be more safe and will also get guaranteed returns. It becomes necessary to know about it.

PPF, EPF, NPS: Saving is essential for retirement and pension plans. Even important goals like education of children and buying a house or flat need to be pursued. However, one must be proactive while preparing a retirement plan to ensure that there will be no paucity of funds.

The question that often arises is where to invest your hard earned money, which is also safety and guaranteed returns. Public Provident Fund (PPF), National Pension System (NPS), Employees’ Provident Fund (EPF), and Mutual Funds are some of the options that you can opt for while planning for pension.

PPF Interest Rate, Income Tax Benefits

1. PPF is considered one of the safest ways to save, as it provides guaranteed and income tax free returns.
2. PPF also provides a deduction of Rs 1.5 lakh on investment under Section 80C of the Income Tax Act.
3. Currently, PPF offers an interest rate of 7.1 percent.
4. PPF account is for 15 years, but one can continue it for five years.
5. A maximum of Rs 1.5 lakh can be invested in a financial year.

NPS Interest, Tax Benefits

1. National Pension System (NPS) is another income tax-efficient retirement savings scheme.
2. Along with a deduction of Rs 1.5 lakh on investment under Section 80C of the Income Tax Act, NPS offers an additional deduction of Rs 50,000 under Section 80CCD (1B) of the Income Tax Act.
3. NPS comes with a lock-in period, as one can withdraw only 60 per cent of the total corpus tax-free at the age of 60 years.
4. However, there is a taxable income in the hands of the pensioner.

EPF interest rate benefits

1. Employees’ Provident Fund Organization (EPFO) offers 8.1 percent interest rate on provident fund.
2. Anyone can take advantage of this by letting the EPF grow and take advantage of compounding.
   mutual funds
3. Mutual funds are considered one of the best options for long term savings goals like retirement.
4. Money can be invested in mutual funds through Systematic Investment Plan (SIP) .

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