PPF, NSC, Sukanya and EPF Reference Rates
Use this page as a planning reference for key long-term savings schemes, then compare tenure, tax treatment, and fit before you decide where to park money.
Tenure: 15 years
Best for: Long-term tax-efficient debt allocation and retirement-side goals.
Note: Annual contribution limits and extension rules apply.
Tenure: 5 years
Best for: Conservative savers looking for a five-year government-backed option.
Note: Works better for goal-based savings than for emergency money.
Tenure: Long-term account linked to the child age rules
Best for: Long-term education or marriage goals for a girl child.
Note: Eligibility is limited and the contribution window is time-bound.
Tenure: Till retirement or eligible withdrawal event
Best for: Core retirement accumulation for salaried employees.
Note: Actual EPF balances also depend on EPS split, wage caps, and job continuity.
| Scheme | Reference rate | Tax treatment | Liquidity | Best for |
|---|---|---|---|---|
| Public Provident Fund (PPF) | 7.1% | EEE. Contributions can qualify under Section 80C and maturity is tax free under current rules. | Loans and partial withdrawals are allowed only under specific rules. | Long-term tax-efficient debt allocation and retirement-side goals. |
| National Savings Certificate (NSC) | 7.7% | Initial investment can qualify under Section 80C. Interest is taxable, subject to prevailing rules. | Locked in for the term except in limited situations. | Conservative savers looking for a five-year government-backed option. |
| Sukanya Samriddhi Yojana | 8.2% | EEE under current rules, with contribution limits and scheme conditions. | Partial withdrawal rules apply for education and maturity conditions. | Long-term education or marriage goals for a girl child. |
| Employees' Provident Fund (EPF) | 8.15% | EEE-style treatment broadly applies subject to current contribution and withdrawal rules. | Employer-linked with withdrawal conditions; not designed for short-term parking. | Core retirement accumulation for salaried employees. |
A higher rate is not automatically better. Lock-in, eligibility, and whether the money is for retirement, education, or medium-term savings matter just as much.
Two schemes with similar rates can feel very different after tax. Use the scheme rules and your own tax profile before comparing only on headline yield.
Money you may need soon should not be placed in a long lock-in only because the rate looks attractive today.
Reference rates help with planning, but contribution size, tenure, and contribution discipline often matter more than a small rate difference.