Both EPF (Employees’ Provident Fund) and PPF (Public Provident Fund) are designed to encourage disciplined, long-term savings. EPF is a compulsory scheme for salaried individuals, while PPF is a voluntary option open to all. Understanding their features, differences, and tax implications can help you choose wisely.
Looking for safe, guaranteed returns without long lock-ins? Bajaj Finance FDs offer up to 7.30% p.a. for senior citizens and up to 6.95% p.a. for customers below 60 years. Open FD.
What is an EPF account?
EPF is a mandatory savings scheme for salaried employees earning Rs.15,000 or more per month. Managed by the Employees’ Provident Fund Organisation (EPFO), it ensures a steady retirement corpus by deducting contributions from both employee and employer. The corpus grows with compound interest, providing financial security post-retirement.
Just like EPF secures your retirement, Bajaj Finance FDs help you secure short- and mid-term financial goals with flexible tenures ranging from 12 to 60 months. Check latest rates.
What is a PPF account?
PPF is a voluntary savings scheme backed by the Government of India. It is open to both salaried and self-employed individuals. With a lock-in period of 15 years (extendable in blocks of 5 years), PPF encourages small, regular savings while providing tax-free returns. Accounts can be opened easily at banks or post offices.
If you want more liquidity than a 15-year lock-in, a Bajaj Finance FD lets you choose shorter tenures while still earning one of the highest FD interest rates in India. Open an FD account and earn up to 7.30% p.a.
EPF vs PPF comparison
Here’s how EPF and PPF differ:
Aspect |
EPF |
PPF |
Eligibility |
Only salaried employees |
Open to all individuals |
Contribution limits |
12% of basic salary (employee + employer) |
Rs. 500 to Rs.1.5 lakh annually |
Tenure |
Till retirement or job change |
15 years (extendable by 5 years) |
Interest rate |
8.25% (2025) |
7.1% (2025) |
Tax benefits |
EEE (contributions, interest & withdrawals are tax-free with conditions) |
EEE (fully exempt) |
Unlike EPF and PPF’s restrictions, Bajaj Finance FDs offer customised payout options—monthly, quarterly, half-yearly, yearly or at maturity—so you can manage cash flow better. Book FD.
Which is safer: EPF or PPF?
Both EPF and PPF are backed by the government, making them extremely safe. EPF enjoys stability through mandatory contributions from employers, while PPF guarantees fixed, tax-free returns. The choice comes down to your employment type and investment horizon.
