Do you also want to build a substantial fund for the future? Are you looking for an option that is safe and also offers tax-saving benefits? If so, this information is for you. Today, we will explain three schemes—EPS, NPS, and PPF—in simple terms and discuss which one can help you become a 'crorepati' (build significant wealth).

EPF vs. PPF vs. NPS
When it comes to saving tax and building a large retirement corpus, EPF, PPF, and NPS are considered the best options. However, the way these three schemes operate differs significantly. While EPF and PPF are safe, government-backed schemes, NPS invests your money in the stock market; this offers higher earning potential but also carries some risk.

You can understand the features of all three schemes through the table below:

Features    EPF (Employees' Provident Fund)    PPF (Public Provident Fund)    NPS (National Pension System)
Primarily for whom? Mainly for salaried employees    Any Indian citizen (salaried, businessperson, or others)    Any eligible Indian citizen
Who invests? Joint contribution by employee and company (12% of basic salary each)    Individual investor    Individual investor
Minimum and maximum investment    Mandatory 12% of basic salary and DA    Minimum ₹500 to maximum ₹1.5 lakh per year
Minimum ₹1,000 for Tier-1; no maximum limit
Type of return    Fixed and government-backed    Fixed and government-backed (reviewed quarterly)

Market-linked (invested in equity and debt; returns not fixed)
Lock-in period / Tenure    Until retirement (withdrawal possible for specific needs during employment)    15 years (extendable upon maturity)
Until age 60 (strict rules for premature withdrawal)
Safety and risk    Completely safe (government guarantee)    Completely safe (government guarantee)
Subject to market fluctuations (involves market risk)

Who wins the calculation? Calculation for EPF

Monthly salary: ₹30,000
Monthly contribution: 12% (meaning ₹3,600 is deposited into the PF account monthly; ₹43,200 annually)
Investment tenure: 30 years
Current interest rate: 8.25%
Total investment over 30 years: ₹12,96,000
Fund accumulated after 30 years: ₹1,48,94,112
Calculation for PPF

Annual investment: ₹1,50,000
Current interest rate: 7.1%
Investment tenure: 25 years
Total investment over 25 years: ₹37,50,000
Fund accumulated after 25 years: ₹1,03,08,015
Calculation for NPS

Monthly investment: ₹10,000
Average return: 9%
Investment tenure: 35 years (assuming investment starts at age 25)
Total investment over 35 years: ₹42,00,000
Fund accumulated at retirement: ₹2,94,17,845

Which option is better for you?
Choose EPF if: You are a salaried employee and want to build an automatic retirement fund every month in collaboration with your company, without taking any risk.

Choose PPF if: You seek a completely safe investment and want to save on taxes, and are willing to lock your money away for a long period of 15 years, even if you are not a salaried employee.

Choose NPS if: You are willing to take some risk—similar to the stock market—to build a substantial retirement fund and aim for maximum returns over the long term.

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