EPF vs PPF vs VPF

Saving for the future is a priority for most individuals, especially when planning for retirement or achieving long-term financial stability. With multiple savings schemes available, such as EPF, PPF, and VPF, selecting the right one can be challenging. Each scheme has its unique features, benefits, and eligibility criteria, making it essential to understand their differences before investing.

For those looking to maximise their savings after withdrawing from these schemes, investing in a Bajaj Finance Fixed Deposit can be a smart move. With guaranteed returns of up to 7.30% p.a., flexible tenures, and a simple online booking process, Bajaj Finance FDs are a reliable option for growing your wealth securely. Explore FDs now!

Each of these provident fund schemes has distinct features that cater to different financial needs. Below is a quick comparison of their primary attributes:

Investing in a Bajaj Finance Fixed Deposit after withdrawing your savings can further enhance your financial strategy with secure and attractive returns. Check FD rates. 

Each scheme has specific eligibility requirements:

• EPF: Mandatory for salaried employees in organisations with 20 or more employees. Both the employee and employer contribute 12% of the employee’s basic salary and dearness allowance (DA).
• VPF: Available only to salaried employees who already have an EPF account. Employees can voluntarily contribute up to 100% of their basic salary and DA.
• PPF: Open to all Indian residents, including salaried employees, self-employed individuals, and even students. Contributions range from Rs. 500 to Rs. 1.5 lakh annually.

Additionally, reinvesting your savings into a Bajaj Finance Fixed Deposit can help you grow your funds securely (at a rate of up to 7.30% p.a.), while enjoying guaranteed returns and flexible options tailored to your financial goals. Open your FD today and secure your future..

Employment status

EPF and VPF are exclusive to salaried employees, while PPF is available to all individuals, including self-employed professionals and students.

Contribution limits

EPF requires a mandatory 12% contribution from both employee and employer, while VPF allows up to 100% of the employee’s basic salary and DA. PPF has an annual contribution limit of Rs. 1.5 lakh.

Employer match

EPF contributions are matched by the employer (up to 12%), whereas VPF contributions are voluntary and not matched. PPF does not involve employer contributions.

Withdrawal rules

EPF and VPF allow partial withdrawals for specific purposes, such as medical expenses or home purchases, while PPF permits partial withdrawals only after six years.

Flexibility

PPF offers more flexibility in terms of contribution amounts and frequency, unlike EPF and VPF, where contributions are deducted automatically.

Interest rates

EPF and VPF offer higher interest rates (currently 8.15% p.a.) compared to PPF (7.1% p.a.).

Risk profile

All three schemes are low-risk and backed by the government, making them ideal for conservative investors.

Long-term financial goals

EPF and VPF are designed for retirement savings, while PPF can be used for both retirement and other long-term goals due to its 15-year lock-in period.

Tax implications

All three schemes fall under the EEE (Exempt-Exempt-Exempt) category, making contributions, interest earned, and maturity proceeds tax-free under Section 80C.

To grow your savings further after these investments, consider a Bajaj Finance Fixed Deposit, offering guaranteed returns and flexible tenures. Learn more about Bajaj Finance FD.

Tax benefits

All three schemes offer tax deductions under Section 80C, making them attractive for tax-saving purposes.

Long-term savings

EPF, VPF, and PPF encourage disciplined, long-term savings, ensuring financial security in the future.

Secure and government-backed

These schemes are backed by the government, making them low-risk and reliable investment options.

Compounding benefits

The power of compounding ensures that your savings grow significantly over time, especially in schemes like PPF with a 15-year lock-in period.

Retirement planning

EPF and VPF are tailored for retirement savings, offering a steady corpus for your post-retirement needs.

Employee-employer contributions

EPF contributions are matched by the employer, effectively doubling the savings for salaried employees.

Flexibility (PPF and VPF)

PPF allows flexible contributions, while VPF gives employees the option to increase their savings voluntarily.

Why Bajaj Finance Fixed Deposit is a smart choice for your savings?

After withdrawing your funds from EPF, VPF, or PPF, reinvesting them in a Bajaj Finance Fixed Deposit can help you achieve higher returns while maintaining financial security. Here are some key features of Bajaj Finance FDs:

• Fixed returns: Guaranteed returns of up to 7.30% p.a. for senior citizens, unaffected by market fluctuations.
• Flexible tenure: Choose a tenure ranging from 12 to 60 months based on your financial goals.
• Low initial deposit: Start with a minimum deposit of just Rs. 15,000.
• Convenient booking process: Open an FD online in just a few clicks by verifying your mobile number, uploading PAN and KYC documents, and completing the payment.
• Additional benefits:
  • Auto-renewal option
  • Nomination facility
  • Loan against FD (up to 75% of the FD value)

Choosing between EPF, PPF, and VPF depends on your employment status, financial goals, and risk appetite. While EPF and VPF are ideal for salaried employees, PPF offers flexibility and accessibility to all individuals. Regardless of your choice, these schemes are excellent for building a secure financial future.

Once you withdraw your funds, reinvesting them in a Bajaj Finance Fixed Deposit can help you grow your savings further. With guaranteed returns, flexible tenures, and a hassle-free online booking process, Bajaj Finance FDs are a reliable option for achieving your long-term financial goals. Start your FD journey today.