Provident fund (PF) is a popular medium for investment as well as investment. Its interest rates are decided by the government from time to time. It is also of three types – Employees Provident Fund (EPF), Public Provident Fund (PPF) and General Provident Fund (GPF). Today we will discuss just the EPF and the PPF and tell you what the difference is and how much interest is getting on.
The EPF,Read more ↓
which employs more than 20 employees in the companies, is included in this scheme. Meaning, the advantage of the EPF is only to those who do the job. In this, a certain portion of your salary is deposited in this account by the employer.
This account is regulated by the Employees Provident Fund Organization (EPFO). Its main purpose is to raise money for retirement. At present, interest of 8.65 percent is being given on this.
PPF is a small savings scheme of the government. For those who are not employed, this is a good way to build retirement funds. You can open a PPF account in any post office or selected banks. In the PPF account, you will have to deposit at least 500 rupees every year.
The amount of deduction in income tax under section 80C of Income Tax Act is available on the amount deposited in this account. At this moment you will get 8 per cent interest.