New Delhi. Both National Pension Scheme (NPS) and Public Provident Fund (PPF) are good investment options. Both are true to make the future safe. But where is the greater benefit among them and which option can make you a millionaire quickly, this question is important. Due to this question, if one has to choose between PPF and NPS, one can get confused. Well, it often happens that in order to save tax of up to Rs 1.5 lakh in a year, people invest in PPF and invest the rest in NPS. But we will put such a calculation here in front of you, which will make it easier for you to choose an option.
Which option is more beneficial
The money you invest in NPS also goes into equity. That is, on an average, it can get 10 per cent returns over a long period of time. On the other hand, if you invest in PPF, then the returns will be only 7.1%. This return is about 3 per cent less than the NPS. In the long term, 3 per cent return will be very high.
PPF-Millionaire
By the way, you can become a millionaire from both NPS and PPF. If you invest Rs 12,500 every month in PPF, then the year is Rs 1.5 lakh. Now you will get 7.1 percent return on this. According to the PPF calculator, if you continue this investment for 30 years, you will get 1.54 crore on maturity. The good thing is that no investment in PPF, interest and maturity amount is taxed.
Millionaire from NPS
Unlike PPF, if you invest Rs 1.5 lakh annually (Rs 12,500 on a monthly basis) in the NPS scheme and keep the annuity fixed at 40 per cent. So according to NPS calculator you will get Rs 1,70,94,940 on maturity. Out of this, about Rs 1.14 crore will be used to purchase annuity. With this, you will get a monthly pension of about 57 thousand rupees.
Get more pension like this
Any Indian citizen (also non-resident) aged 18-65 can open NPS account. But it is not allowed to have more than one NPS account. But if you want more pension then you can keep an account in the Atal Pension Yojana. One can open NPS account alone. There is no joint account facility in this.
How returns are decided in NPS
For information, let us know that NPS is a market linked scheme. The return on it depends on the equity market. Therefore the returns here can be low or even high. There is no possibility of getting a fixed or similar return. As the phase is progressing, it is necessary to prepare for our future and emergency on its own. Especially before reaching the retirement age, we should prepare for the expenses after that. Medical facilities are very expensive and will be needed in old age. So be prepared beforehand so that you do not run out of money.
