No, the very nature of NPS and its investment in market-linked securities makes the interest impossible to fix. Historically, the average interest rate of the funds has hovered between the 9-12% mark.
As explained before, there are different classes of investment depending on the investment in debt or equity instruments. Moreover, the interest earned depends on the percentage of investment in different schemes. Since NPS is tied to the underlying funds, it earns differently for different investors and their investment preferences.
In conclusion, the NPS interest rate is not fixed and cannot be so because of the inherent link to fluctuating interest rates of different asset classes. Hence, investors are advised to invest in the scheme with caution as per their risk appetite.
Finally, the NPS interest rate has varied historically between 9-12%, which is viewed as quite a high rate of return compared to other low-risk investment vehicles for pensions such as the nearest rival, PPF. Therefore, the National Pension Scheme is quite an attractive investment option for a retirement fund.