EPF vs PPF vs VPF vs NPS: know which scheme will be better for creating a big retirement fund


New Delhi, Business Desk. Retirement funds are required to meet post-retirement needs. A person should start saving for retirement funds from the beginning of his job. The earlier the savings for retirement funds are started, the larger the funds we can get at the time of retirement. There are many investment schemes in the market for this. Some of these are prominent – Employees Provident Fund (EPF), General Provident Fund (PPF), Voluntary Provident Fund (VPF) and National Pension System (NPS).

Most of these schemes are long-term deposit plans and offer high returns. It is necessary for any customer to know all these while choosing one of these investment plans. This way the customer will find out which is the most accurate plan for him. Let us know about these schemes.

Also Read: Post Office’s new 5 star scheme, now every man will get a direct advantage


Every company with more than twenty employees is required to contribute towards the provident fund of its employees. 12 percent of his basic salary and DA is deposited in the employee’s PF account by the employee and the same by the company. The EPF also includes pension funds. It is provided to the employee after retirement. The rate of interest on EPF in the current quarter is 8.5 percent. In certain circumstances investors can withdraw from their EPF account before maturity.


VPF EPF only expands. This means that investors can go for VPF only when they have an EPF account. Like EPF, VPF offers 8.5 percent interest. If the employee deposits more than 12 percent of his basic salary and DA in the PF Fund, then it is called VPF or Voluntary Provident Fund. Any salaried employee can deposit his basic salary and DA up to 100 percent in VPF. Under this scheme, an investor can increase his contribution to EPF and get a much larger return in the long run.


Public provident fund i.e. PPF is a very good investment option for creating a retirement fund. PPF is a government-backed savings scheme. The most important thing about PPF is that it comes with EEE status. That is, there are three levels of interest subvention in this investment scheme. In this scheme, the maturity amount and interest income are also tax free. An investor can save income tax of Rs 1.5 lakh every year by investing in this scheme. The scheme comes with a lock-in period of 15 years. It can also be extended further. Currently, the interest rate on PPF is 7.1 percent. Those who want to invest risk-free and do not want to choose a long-term investment option like NPS or VPF, can invest in PPF.


It was launched mainly in the year 2004 for government employees. It was reopened in 2009 for general citizens as well. People between 18 and 60 years of age can invest in the National Pension System. Accounts can be opened under this scheme by going to all government and private banks around the country. NPS is managed just like a mutual fund. Due to this, very good returns can be obtained from this investment option. In NPS, the investor has to deposit some amount every month during his job.

Investors can withdraw a portion from the fund prepared after retirement and take an annuity from the remaining amount for regular income. There are three ways to invest in NPS. First equity, second corporate bond and third government securities. Here the investor gets two options to determine his investment. First is asset allocation and second is Auto Choice. Auto Choice initially gets a 50 per cent share in equity and decreases over time. At the same time, in asset allocation, an investor can invest up to 75 percent in equity.

Watch Video : Voter ID Card Download | How to download voter ID card | Voter ID card kaise download karen

Article first Appeared on Informalnewz



Please enter your comment!
Please enter your name here