You too must have heard the name of VPF many times, which is different from PPF accounts. PPF accounts are opened by non-employed people and this VPF account is different from PPF.
A part is deducted from the salary of the employed people in the form of EPF, which is deposited keeping in mind their retirement. EPF is your investment in a way, which you make every month. However, many people use VPF for investment with PF account. You too must have heard the name of VPF many times, which is different from PPF accounts. PPF accounts are opened by non-employed people and this VPF account is different from PPF.
In such a situation, we know what this VPF is and how it can be invested in it. You will also know why not everyone can invest in it. Know about VPS, which is the first choice of many employees for investment.
What is VPF?
The full name of VPF is Voluntary Provident Fund. This is an extension of the EPF and for this reason only jobbers can open it. When you deposit extra money in EPF account, it is called VPF. For example, suppose EPF deducts Rs 3000 from your salary and increases it with your will and increases it to Rs 4000 or 5000, then extra money is VPF. It is different from the 12 per cent of the EPF.
Who can open it?
Only those who have an EPF account can take advantage of it. It does not have a separate account, just you have to deposit more money in your PF account. Non-employed people and people in the unorganized sector cannot take advantage of this.
How much interest do you get?
VPF is not a separate account, it is just your extra share in EPF. Therefore, it gets as much interest as it gets on PF account. The year the rate of interest on PF is equal to the interest received on VPF. Although the rate of interest of PF keeps changing, but still it gets more money than PPF account.
How to open
For this, there is no need to make any special mess. You can easily invest extra money in VPF, for this you will have to contact your office’s HR or Finance team and can give request for VPF there. After this, the amount you want will be added to the VPF.
What is the benefit of VPF?
If people who want to invest money and do not want to get into much trouble, then they can increase the money in VPF like a policy. This not only gives you good interest, but you also have no tension. There is no tax on the interest received in this and you can contribute as much as you want. Along with this, many facilities like PF like loans etc. are also available.
