With most salaried individuals the confusion of where to invest or save money and how much takes up the whole year and when the financial year-end approaches then the anxiety shoots up as you have multiple options like EPF, shares, mutual funds, fixed deposit, PPF, insurance, etc. But you are still not sure where to put your money.
Although all options are great, when it comes to making quick decisions, then long term benefit should be given the priority. EPF and PPF are two such options which are known for their long term benefits, even so, they are known as retirement funds.
PPF, on the other hand, is open for all. It has a lock-in period of 15 years, and you can open it with an investment of just Rs. 500.
Interest Rate
The current interest rate of EPF is 8.50%. It is decided each year just before the start of the financial year.
The current interest rate of PPF is 7.10%. It is revisited each quarter.
Tenure
The EPF maturity amount can be claimed only at the time of retirement. Whereas, the PPF has a lock-in period of 15 years after which you can either claim the maturity amount or extend the period in the blocks of five years as many times as you want.
Although all options are great, when it comes to making quick decisions, then long term benefit should be given the priority. EPF and PPF are two such options which are known for their long term benefits, even so, they are known as retirement funds.
EPF vs PPF
EPF is mandatory for salaried employees whose basic salary plus dearness allowance is not more than Rs. 15,000. Under this, 12% of your basic salary and dearness allowance is submitted by the employer along with its equal share to your EPF account each month.PPF, on the other hand, is open for all. It has a lock-in period of 15 years, and you can open it with an investment of just Rs. 500.
Interest Rate
The current interest rate of EPF is 8.50%. It is decided each year just before the start of the financial year.
The current interest rate of PPF is 7.10%. It is revisited each quarter.
Tenure
The EPF maturity amount can be claimed only at the time of retirement. Whereas, the PPF has a lock-in period of 15 years after which you can either claim the maturity amount or extend the period in the blocks of five years as many times as you want.
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