EPF vs PPF vs VPF: Most of the employed people start thinking about their retirement while in service. He does plan B of investment for him. During the job, they also invest to create a big fund for retirement.
There are many schemes for the employees to invest in. Here we are telling you which provident fund schemes are there and which one is best for you to create a big corpus for retirement.
Now there are 3 plans to make provident fund
There are 3 provident fund schemes in the schemes run by the government. The first is Voluntary Provident Fund (VPF), Employees’ Provident Fund (EPF) and Public Provident Fund (PPF). It is very famous among those people who want to create a big fund for their retirement. Know which scheme can be more beneficial for you.
EPF
It is an essential retirement savings scheme. Both the employer and the employee contribute to EPF. The contribution of the worker and the employer is decided according to the salary structure. Whereas, some money can be extracted from it. Partial withdrawal is allowed, the full amount will be released only when the individual reaches the age of retirement. The scheme offers tax benefits. EPF is suitable for salaried individuals who need a retirement-focused savings option.
PPF
It also helps the salaried person to reduce taxes along with creating a bigger corpus after retirement. PPF has a minimum lock-in period of 15 years. However, a certain amount can be withdrawn after some time. Anyone can invest money in PPF. This is a long term investment plan.
VPF
The amount of investment in VPF is fixed, but if the employees want, they can invest more money as per their wish. This means that you can also invest your rental income or money from mutual funds. You can invest more money in this. There is an option to withdraw money after five years. No tax is deducted on this.
