PPF vs ELSS vs NPS vs SSY — 80C Options Compared Honestly
Rohan has ₹1.5 lakh to fill his 80C. His agent pushes ULIP, his father swears by PPF, his colleague brags about ELSS. Here is the side-by-side comparison — lock-in, returns, exit tax and liquidity — so the goal picks the product, not the salesperson.
All four options below earn 80C deduction (old regime), but they are built for different jobs. The single biggest mistake is choosing by 'returns' alone — a 3-year-lock ELSS and a till-60 NPS are not substitutes for each other.
Master comparison table
| Feature | PPF | ELSS fund | NPS Tier-1 | SSY |
|---|---|---|---|---|
| Who it's for | Safe long-term savers | 3-yr+ equity investors | Retirement builders | Girl child under 10 |
| Lock-in | 15 yrs (extendable by 5) | 3 yrs (shortest!) | Till age 60 | 21 yrs / marriage after 18 |
| Returns (indicative) | ~7.1% govt-fixed* | Market-linked (~11-13% long avg) | Market-linked (~9-11% long avg) | ~8%+ govt-fixed* |
| Tax on exit | Zero (EEE) | LTCG 12.5% above ₹1.25L/yr | 60% tax-free; annuity taxable | Zero (EEE) |
| Yearly limits | ₹500 – ₹1.5L | No cap (₹1.5L for 80C) | 80C 1.5L + extra ₹50k | ₹250 – ₹1.5L |
| Emergency access | Partial from yr 7; loan yr 3-6 | After 3 yrs, anytime | Very restricted till 60 | 50% for education after 18 |
*Small-scheme rates are revised quarterly by the government — always check the latest before deciding.
Pick by goal (the 60-second version)
- Retirement at 60: NPS (extra ₹50k deduction + annuity discipline) with PPF as the safe half.
- Daughter's future: SSY first — highest fixed rate of the four plus EEE treatment.
- 3–5 year goal: ELSS via monthly SIP; shortest lock-in, and SIPs smooth market timing.
- Can't watch markets: PPF. 'Boring' money you never touch beats 'exciting' money you panic-sell.
New regime note: none of these four gives any deduction in the new regime (only employer NPS survives). But PPF/SSY interest stays tax-free and ELSS/NPS still grow — invest for the goal, not just the deduction.
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in
Keep Reading
Frequently Asked Questions
ELSS mutual funds — 3 years, the shortest of all 80C options. PPF locks 15 years, NPS till age 60.
Yes — PPF is EEE: deposit deductible (old regime), interest tax-free, maturity tax-free. Same for SSY.
Up to 60% of the corpus can be withdrawn tax-free; the 40% annuity purchase is exempt but monthly pension from it is taxable.
No — Sukanya Samriddhi Yojana is only for a girl child below age 10, one account per child (max two).
No — none of the four gives 80C deduction in the new regime. Only employer NPS (Sec 125) survives there.