Saving for retirement? First understand the difference between EPF, VPF and PPF

The biggest tension of job seekers is to create their own retirement fund. But do you know the difference between the words EPF, PPF and VPF related to retirement. Let us tell...

If you are saving to create a retirement fund, then you must have heard or read about EPF and PPF. But have you ever even heard of VPF? Do you know their difference? Let's know about them…

EPF, PPF and VPF are an important part of the retirement planning of all the three people. These retirement plans have received support from the government.

What is EPF, PPF and VPF?

EPF is called 'Employee Provident Fund', VPF is called 'Voluntary Provident Fund' and PPF is called Public Provident Fund. This is the difference between these three.

EPF has been created to provide financial security to the employees of the organized sector at the time of retirement. In this, the employee of a company contributes 12 percent of the salary made by including his basic salary and dearness allowance. The company also has to contribute the same amount. EPFO determines the interest for this.

VPF is an extension of EPF in a way. In this, a person can contribute some part of his salary and maximum 100 percent of basic salary and dearness allowance in this fund. Interest on this is also calculated according to EPF. Contribution to VPF makes your retirement as secure as EPF.

PPF is a government guaranteed and simple scheme providing security of income. Its interest is fixed by the government every quarter. It is similar to EPF, but anyone can invest in it.

Which scheme is suitable for whom?

Generally people who get salary means come in salaried class. EPF and VPF are a good investment option for them. Whereas for those who do their own work or any business, the PPF scheme is better for them. PPF is considered a safe and good return investment.