PPF Vs EPF: Provident Fund (PF) is a savings account that helps people save money for retirement. After retirement with PF money, life passes without any stress or financial crunch. Public Provident Fund in India is EPF and PPF, by investing in which you can create a big fund for retirement. Do you know whether employees can invest in both EPF or PPF?
PPF Vs EPF – Can employees invest in both?
Let us tell you that an employee can open an account in both PPF and EPF simultaneously and invest in both. There is a difference between these two. EPF is a mandatory scheme with contributions from you and the employer (your company). Whereas, investing in PPF is not mandatory. This is a voluntary scheme. It depends on your choice whether you want to invest in it or not? An employee can avail benefits by opening both the accounts.
EPF
It is a mandatory retirement savings scheme. Both the employer and the employee contribute to EPF. The contribution of the worker and the employer is decided according to the salary structure. Whereas, some money can be withdrawn from it. Partial withdrawal is allowed, the full amount will be released only when the individual retires.
PPF
This helps the employed person to create a bigger corpus after retirement and also helps in reducing taxes. The minimum lock-in period of PPF is 15 years. However, a certain amount of money can be withdrawn after some time. Anyone can invest money in PPF. This is a long term investment plan.
