EPF is an essential contribution from the salary of a person doing a job. Whereas any normal Indian citizen (salaried or non-salaried) can invest in PPF.
Employees’ Provident Fund and Public Provident Fund are two types of retirement saving schemes. The EPF Retirement Fund body is offered by Employees’ Provident Fund Organization, while PPF is offered by banks and post offices.
EPF is an essential contribution from salary
EPF is an essential contribution from the salary of a job person. Any company that employs more than 20 employees has to deduct the EPF of the employee. Whereas any normal Indian citizen (salaried or non-salaried) can invest in PPF. However, PPF cannot be opened by Hindu Undivided Family.
And contributed to EPF and PPF.
Employee Provident Fund is a scheme to provide financial benefits to post-retirement employees. Every month in EPF, EPF account is deducted after deducting 12 percent money from the basic salary of the employee. The company also puts 12 percent of the money in the EPF account of that employee. A minimum amount of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in PPF every year. Also Read:PF Balance Check Online – How to check your PF Account Balance & Statements from EPFO?
In addition, PPF account holders also get the benefit of tax rebate under section 80C of Income Tax Act. Talking about the maturity period, the PPF period is 15 years, but you can also increase it. Once applied, you can extend it for 5 years. Also read: Good news for farmers! Now you can send your vegetables and fruits abroad from Varanasi Airport
Rates of EPF and PPF
Employees Provident Fund Organization will provide 8.5% interest rate on EPF deposits. This interest is for the financial year 2019-20. Recently, the government had said that the interest rates on small savings schemes including PPF will remain unchanged in the January-March quarter. Thus, the annual interest rates for PPF will remain at 7.1 per cent.
