NPS vs PPF vs EPF: Want to make Rs 1,50,000 yearly investment to create a retirement corpus? Know which scheme can give you larger corpus in 35 years

The current EPF interest rate is 8.25 per cent, while PPF offers a 7.10 per cent interest rate. The NPS interest rate ranges between 9 per cent to 12 per cent per annum.

In EPF, an employer also contributes every month, and this is not the case in PPF. While in NPS, you can invest through employer's contributions as well as your personal contributions.

In EPF, you can withdraw part of your money for education, marriage, house construction, while in PPF, there is 15 15-year lock-in period, and in NPS, you can not fully withdraw your funds until 60 years of age.

For EPF, PPF, and NPS, tax deduction is available for up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act. For NPS, the tax deduction is also available under the new tax regime if you have invested through the employer's contributions.

In EPF, you can invest up to 12 per cent of your basic salary while in PPF, the minimum investment is Rs 500 and the maximum limit is Rs 1.5 lakh per year, and in NPS, you can invest up to 14 per cent of your basic salary if it is employer's contribution and 10% of basic pay if it is personal contributions.

In all three schemes, the investment amount in 35 years will be the same, i.e., Rs 52,50,000, but the returns will be different.

If you invest Rs 12,500 per month (Rs 1,50,000 yearly) in EPF, your maturity amount will be around Rs 2,95,84,907 (Rs 2.9 crore) in 35 years.

If you invest Rs 12,500 per month (Rs 1,50,000 yearly) in PPF, your maturity amount will be around Rs 2,26,97,857 (Rs 2.27 crore) in 35 years.

If you invest Rs 12,500 per month (Rs 1,50,000 yearly) in NPS, your maturity amount will be around Rs 8,03,86,993 (Rs 8.03 crore) in 35 years.

As per the above calculations, the NPS will be a better retirement scheme as you will get the highest returns in this scheme on the same investment of Rs 1,50,000 per year for 35 years.