VPF vs EPF vs FD

Financial planning is a cornerstone of achieving long-term stability and security. Whether you are looking to build a retirement corpus, save on taxes, or secure assured returns, choosing the right investment avenue is crucial. For salaried individuals, options like the Employee Provident Fund (EPF) and Voluntary Provident Fund (VPF) are popular choices for retirement savings. Meanwhile, fixed deposits (FDs), such as the Bajaj Finance Fixed Deposit, appeal to those seeking guaranteed returns and flexible tenure options.

This article provides a comprehensive comparison of VPF, EPF, and FD based on their features, benefits, returns, and risks. By the end, you will have a clear understanding of which investment option aligns with your financial goals.

The Voluntary Provident Fund (VPF) is an extension of the Employee Provident Fund, allowing salaried individuals to voluntarily contribute more than the mandatory 12% of their basic salary and dearness allowance. It is an excellent option for those looking to boost their retirement savings while enjoying tax benefits.

Features of VPF

• Voluntary Contributions: Employees can contribute up to 100% of their basic salary and dearness allowance.
• Interest Rates: VPF earns the same interest rate as EPF, which is declared annually by the government (currently around 8.75%).
• Tax Benefits: Contributions qualify for tax deductions under Section 80C of the Income Tax Act.
• Tenure: Contributions remain active until retirement or resignation.
• Withdrawals: Partial withdrawals are allowed for specific purposes like medical expenses, marriage, or education.

VPF is an ideal choice for salaried individuals seeking an additional tax-saving instrument with low risk.

To further enhance your financial stability with assured returns and flexible tenure options, consider diversifying your portfolio with a Bajaj Finance Fixed Deposit. Offering attractive interest rates and high safety ratings. Book FD. 

The Employee Provident Fund (EPF) is a government-backed mandatory retirement savings scheme for salaried employees working in organisations with 20 or more employees. Both the employer and employee contribute 12% of the employee’s basic salary and dearness allowance to the EPF account.

Features of EPF

• Mandatory Contributions: A fixed 12% contribution from both employer and employee.
• Interest Rates: The government declares the EPF interest rate annually (currently 8.75%).
• Tax Benefits: Contributions, interest, and withdrawals are tax-free under certain conditions.
• Tenure: Active until retirement or resignation.
• Withdrawals: Allowed for specific purposes like retirement, unemployment (after two months), house purchase, or medical emergencies.

EPF is a reliable and low-risk option for salaried individuals to build a substantial retirement corpus while enjoying tax exemptions.

Additionally, for short- to medium-term goals, Bajaj Finance Fixed Deposit offers assured returns of up to 7.30% p.a. along with flexibility in tenure. Explore Bajaj Finance Fixed Deposit today to complement your EPF savings and ensure a well-rounded financial plan.

A Fixed Deposit (FD) is a financial instrument offered by banks and non-banking financial companies (NBFCs) that allows individuals to invest a lump sum for a fixed tenure at a predetermined interest rate. 

Bajaj Finance Fixed Deposit stands out for its high safety ratings and attractive returns.

Features of Bajaj Finance Fixed Deposit

• Assured Returns: Offers fixed returns that are unaffected by market fluctuations.
• High Safety Ratings: Rated CRISIL AAA/STABLE and [ICRA]AAA(Stable), ensuring the safety of your investment.
• Flexible Tenure: Tenure options range from 12 to 60 months.
• Attractive Interest Rates: Up to 7.30% p.a. for senior citizens and up to 6.95% p.a. for others.
• Ease of Investment: Simplified online and offline booking with a hassle-free KYC process.

Bajaj Finance Fixed Deposit is a suitable choice for individuals seeking guaranteed returns and flexibility in investment tenure. Check latest rates. 

Understanding the key differences between VPF, EPF, and FD can help you make an informed decision based on your financial objectives.

Choosing between VPF, EPF, and FD depends on your financial goals, risk appetite, and liquidity needs.

• Tax Savings: EPF and VPF are better suited for salaried individuals aiming to maximise tax benefits under Section 80C.
• Retirement Planning: EPF and VPF are ideal for building a long-term retirement corpus.
• Liquidity and Flexibility: Bajaj Finance Fixed Deposit offers greater flexibility in tenure and payout options, making it an excellent choice for short- to medium-term financial goals.
• Portfolio Diversification: Combining EPF or VPF with Bajaj Finance Fixed Deposit can help balance risk and returns while ensuring liquidity.

For individuals seeking guaranteed returns and payout flexibility, Bajaj Finance Fixed Deposit is a reliable option to complement EPF and VPF savings. Open FD account. 

VPF, EPF, and Bajaj Finance Fixed Deposit are all excellent investment options, each catering to different financial needs. While EPF and VPF are ideal for salaried individuals focusing on retirement planning and tax savings, Bajaj Finance Fixed Deposit stands out for its assured returns, high safety ratings, and flexible tenure options.

By diversifying your portfolio across these instruments, you can achieve a balance of stability, growth, and liquidity. Start planning your financial future today with Bajaj Finance Fixed Deposit and enjoy assured returns of up to 7.30% p.a.

Book an FD now!