Finance
80C tax savings: ranking every option
PPF, ELSS, NPS, EPF, life insurance, ULIPs — ranked by post-tax return and lock-in.
The ranking (return vs liquidity)
- ELSS — 12% expected, 3y lock-in. Best for younger investors.
- EPF — 8.25%, locked till retirement. Automatic if salaried.
- PPF — 7.1%, 15y lock-in. Sovereign safety.
- NPS — 9–11% expected (60% equity max), locked till 60. Extra ₹50k under 80CCD(1B).
- 5-year tax-saver FD — 7%, 5y lock-in. Conservative.
- Life insurance term — protection, not investment.
- ULIPs / endowment — generally avoid.
How to allocate ₹1.5L
- ₹50k ELSS
- ₹50k PPF
- EPF auto-fills the rest if you’re salaried.
- Plus ₹50k NPS (separate 80CCD(1B)).
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