INSUBCONTINENT EXCLUSIVE:
EPF Vs PPF: The PPF account matures in a period of 15 years.Employees' provident fund or EPF and public provident fund or PPF, are two types
of provident fund (PF) that reaps benefits at the time of maturity
While, EPF is a compulsory retirement saving option that is deducted from the salary of salaried individuals, PPF is invested by citizens
EPF is offered by retirement fund body EPFO or Employees' Provident Fund Organisation while PPF is offered by banks and post offices
Public Provident Fund (Amendment) Scheme, 2016 was introduced by the National Savings Organization in 1968 to mobilize small
savings.EligibilityEPF is mandatory for deduction from the salaries of individuals by a company with more than 20 employees
However, it cannot be opened by Hindu Undivided Families or HUF.Minimum/Maximum contributionAn employee contributes 12 per cent of his
salary towards the EPF kitty, while an employer pays another 12 per cent, out of which 8.33 per cent is invested in the Employee's Pension
Scheme (EPS) while the balance 3.67 per cent is invested in EPF
The subscriber should not deposit more than Rs
1,50,000 per annum as the excess amount neither earns any interest nor is eligible for rebate under Income Tax Act,Interest ratesEPFO
recently increased the interest rate on EPF to 8.65 per cent for the current financial year
Once approved by the Ministry of Finance, the move will lead to a higher return on EPFO contributions for the financial year ending March 31
In case of PPF, the interest rate is determined by central government on quarterly basis
It can also be transferred while changing companies till retirement
Thereafter, on application by the subscriber, it can be extended for one or more blocks of five years each.Partial withdrawalPartial
withdrawal from EPF accounts is allowed for purchase/construction of house, repayment of loan, non-receipt of wage for two months, marriage
from the seventh financial year from the year of opening account
