NPS |
PPF |
Fixed Deposits |
Insurance
(Endowment/ULIPs) |
Mutual Funds |
|
|---|---|---|---|---|---|
Purpose |
Retirement savings |
Long-term savings |
Short to medium - term savings |
Life cover + savings |
Short, medium and long term options |
Lock-in Period |
Until retirement (60 years) |
15 years |
Depends on the tenure of the deposit |
Depends on the Policy term |
No specific lock-in (except ELSS) |
Withdrawals |
Limited (after 60 years; partial after 3 years for specific purposes) |
Partial after 5 years; full after 15 years |
FDs can be broken but may incur penalty |
Varies as per policy terms |
Anytime (except ELSS) |
Returns |
Market-linked |
PPF Interest rates are fixed quarterly by Government of India |
Fixed (depends on bank rates) |
Varies (depends on plan) |
Market-linked (varies depending on the scheme) |
Tax Benefits |
Yes, under Sections 80C, 80CCD(1B) and 80 CCB (2) |
Yes, under Section 80C |
Tax benefits only for 5-year FD under Section 80C |
Yes, under Section 80C |
Yes, under Section 80C for ELSS |
Risk |
Depends on investment choice |
Low |
Low |
Depends on plan |
Varies depending on the scheme invested in |
Annuity Options |
Yes (upon maturity) |
No |
No |
Yes (if it's an endowment) |
No |