PPF, EPF or NPS: Which will make you a millionaire in old age? Know where you will get the double benefit of highest interest and tax exemption

News India Live, Digital Desk: Planning for retirement in today’s time has become not a luxury but a necessity. PPF, EPF and NPS are the three most popular options for investment in India. But often people remain confused as to which scheme is best for them? Do you want safe returns or strong earnings like the stock market? Let us analyze these three schemes in detail so that you can take the right decision for your future. PPF (Public Provident Fund): ‘Superhit’ combo of security and tax saving. If you do not want to take risk at all, then PPF is the safest option for you. This is a fully government guaranteed scheme. Interest Rate: Currently, it is offering annual interest at the rate of 7.1%. Tax Benefit: It comes in the ‘EEE’ (Exempt-Exempt-Exempt) category. That is, investment, interest and maturity… you will not have to pay even ₹ 1 tax on all three. Lock-in period: Its period is 15 years, which you can extend in a block of 5 years each. EPF (Employees’ Provident Fund): ‘Fixed’ boon for employed people. EPF is the best retirement tool for salaried employees. In this, 12% of your basic salary is deducted and your company also contributes the same amount. Interest rate: The government has fixed its interest rate at 8.25% for the financial year 2023-24, which is much higher than PPF. Special feature: It provides tremendous benefit of compounding. This creates a huge fund at the time of retirement. However, the interest received on annual contribution of more than ₹ 2.5 lakh now comes under the ambit of tax. NPS (National Pension System): Your money will grow with the market. If you want inflation-beating returns by taking a little risk, then NPS is the best. Returns: Since its money is invested in equity (share market) and debt funds, there is a possibility of getting returns of 10% to 12% here in the long term. Extra tax exemption: In addition to the ₹ 1.5 lakh of section 80C, an additional tax exemption of ₹ 50,000 (under 80CCD 1B) is available. Pension facility: After the age of 60 years, you can withdraw 60% of the money, while 40% will continue to give you pension throughout your life.