PPF Vs EPF: If pension continues to be received even after retirement, then it is icing on the cake. Everyone wants to be self-reliant. In such a situation, people start investing for retirement right from the beginning of their job. Many people like to invest in PF and EPF. Can an employee invest in PPF account along with EPF?
The company plans the retirement of its employees right from the beginning of the job. Apart from this, we also invest in many investment schemes to continue earning income after retirement.
Whenever it comes to retirement scheme, many people recommend investing in Provident Fund (PF) or EPF. Guaranteed returns are available in both these schemes. By investing in both these schemes, we can create a big fund for retirement. Every person wants to save as much money as possible, so the question arises whether employees can invest in both EPF or PPF?
Investment can be made in both EPF and PPF
An employee can invest in both PPF and EPF. Investment can be made in both these schemes together. Actually, the employer along with the employee also contributes to the EPF. At the same time, PPF is a kind of voluntary scheme. You can invest in this as per your convenience.
EPF Scheme
EPF is a retirement scheme. In this scheme the employee contributes a part of his salary. The company also contributes as much as the employee contributes. The amount of contribution is decided according to the salary structure. Under this scheme, an employee can make partial withdrawal even while working. However, complete withdrawal takes place only after retirement.
PPF
PPF is also a type of retirement scheme. This helps in creating a larger corpus for retirement and also helps in reducing taxes. The lock-in period in PPF is 15 years. However, after a period of time, some percentage can be withdrawn from this fund. This is a long investment scheme.
How to open PPF account (how to open PPF account)
- Choose either Internet Banking or Mobile Banking option of the bank in which you have your account.
- After this you have to go to ‘Open a PPF Account’ and click on ‘Self Account’.
- Now you have to fill the form shown on the screen and deposit the minimum amount for 1 year.
- After this the form will have to be submitted. Now enter the OTP received on your mobile number.
- In this way you can easily open your PPF account sitting at home. You will get all the information related to the account on your mobile number or registered e-mail.
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