7 Differences Between PPF & NPS Schemes

Outlook Money

What Are NPS & PPF?

Public Provident Fund (PPF) and the National Pension System (NPS) are government-backed long-term, low-risk retirement savings plans.

Pension Fund Investment

Interest Rates

PPF currently offers a 7.10 per cent interest annually, whereas NPS is a market-linked plan. 

Interest return on investment

Lock-In Period

PPF has a 15-year lock-in period, whereas NPS matures when the subscriber turns 60. 

Long-Term Lock-In


In NPS, at least 40% of the fund is reinvested in an annuity after retirement; in PPF, the subscriber can withdraw the full amount.



Both NPS and PPF allow withdrawals under certain conditions; the former allows up to three withdrawals before maturity.


Tax Exemptions

PPF and NPS subscribers get up to Rs 1.5 lakh tax exemptions in a financial year; NPS Tier 1 provides an extra Rs 50,000 deduction. 

Tax Exemption

Age Limit

PPF has no minimum age limit to start an account; for NPS accounts, the subscriber must be between 18 and 60 years.

Premium-Paying Age

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