VPF vs NPS — which gives better returns?

VPF returns EPF rate (currently 8.25% p.a., EEE status) — guaranteed, risk-free. NPS Tier-1 equity allocation can yield 10-14% but 40% must buy a taxable annuity at retirement. For risk-averse investors or those in 30% slab, VPF often wins net-of-tax.

Is VPF fully tax-free?

VPF contributions up to ₹2.5L/year (employee + employer combined) earn tax-free interest. Beyond ₹2.5L, interest is taxable. The maturity corpus is tax-exempt (EEE) if 5+ years of service.

Can I invest in both VPF and NPS?

Yes! Many employees split contributions — maximize VPF for guaranteed EEE returns and contribute to NPS for the additional ₹50,000 deduction under 80CCD(1B) in the old regime. In new regime, only the employer NPS contribution deduction applies.

VPF vs NPS ComparatorFY 2026-27

Compare Voluntary Provident Fund vs NPS contributions — returns, tax benefits, liquidity, and maturity corpus.

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Quick Summary: VPF vs NPS Comparator

The VPF vs NPS Comparator evaluates two powerful retirement tools. VPF offers a guaranteed 8.25% return (EEE) in FY 2026-27, while NPS provides market-linked equity upside and an additional ₹50,000 tax deduction under 80CCD(1B) for old regime taxpayers.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.