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PPF vs EPF vs NPS vs FD Comparison

Compare PPF, EPF, NPS and FD maturity value side by side to find the best fit for your age and tax bracket.

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💡 Expert Tips

1

PPF and EPF are both fully tax-free (EEE) — the safest, most tax-efficient core of a conservative portfolio.

2

NPS adds an extra ₹50,000 deduction under Section 80CCD(1B), on top of the ₹1.5L Section 80C limit shared by PPF/EPF/ELSS.

3

40% of your NPS corpus must buy an annuity at maturity — factor that lower liquidity into your decision.

How to read your result

EPF's advantage in this comparison comes largely from the employer match effectively doubling your contribution — if you're self-employed or your employer doesn't match, PPF becomes the more directly comparable tax-free option since it doesn't depend on an employer relationship.

⚠️ Common Mistakes

Assuming NPS returns are guaranteed like PPF/EPF.

NPS is market-linked (a mix of equity and debt) — the 10% used here is a long-run historical estimate, not a guaranteed rate. Actual returns will vary year to year and could be lower.

Not accounting for NPS's mandatory annuity requirement when planning liquidity needs.

40% of your NPS corpus must buy an annuity at maturity, reducing the lump sum you can access immediately — factor this lower liquidity into retirement planning, not just the headline maturity value.

Maxing out PPF without also using the separate NPS 80CCD(1B) deduction.

PPF/EPF/ELSS share a combined ₹1.5L Section 80C limit, but NPS offers an additional ₹50,000 deduction under Section 80CCD(1B) — many people leave this extra deduction unused.

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Frequently Asked

Which is better, PPF or NPS?

NPS has historically delivered higher returns (~10% blended) but 40% of the corpus must buy an annuity at maturity. PPF is safer and fully liquid-at-maturity at a lower, but fully tax-free and guaranteed, 7.1%.

Can I invest in both PPF and NPS?

Yes — and it is often the best approach. Both qualify for Section 80C (shared ₹1.5L limit with EPF/ELSS), and NPS additionally unlocks a separate ₹50,000 deduction under Section 80CCD(1B).

Is EPF better than PPF?

EPF usually wins on pure returns because your employer matches your contribution rupee-for-rupee — effectively doubling your invested principal before any interest is even applied. PPF is open to everyone (not just salaried employees) and gives you more control over contribution timing.

Why is FD the worst option here?

FD interest is fully taxable every year at your income slab rate, unlike PPF/EPF (fully tax-free) or NPS (60% tax-free at maturity). At a 30% tax slab, a 7% FD behaves like roughly a 4.9% post-tax return.

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Old vs New Tax Regime Calculator

Quick tip

The new regime has lower rates but almost no deductions — the old regime has higher rates but rewards 80C, HRA and other claims.

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