Nowadays, when earning money is becoming difficult, everyone is looking for the best investment options. EPF (Employee Provident Fund) and VPF (Voluntary Provident Fund) are two such schemes that provide you good returns and tax benefits.
Do you know that you can get interest up to 8.15% by investing in these schemes?
This article will give you information about EPF and VPF and how they can be beneficial for you.
What are EPF and VPF?
EPF is a government-backed scheme that provides financial security to employees after retirement. VPF is a voluntary scheme that allows you to make additional contributions to EPF.
How to contribute to both these schemes?
Contribution to EPF is made by your employer by deducting a certain percentage of your salary. You can contribute up to 12% of your basic salary and DA. Contribution to VPF is voluntary and you can contribute up to 100% of your basic salary.
What are the benefits of investing in these schemes?
High interest rates: In EPF and VPF, you get interest rates up to 8.15%, which is much higher than other investment options.
Tax Benefits: Both contributions made and interest earned in EPF and VPF are tax-free.
Retirement Benefits: EPF provides you pension and lump sum amount after retirement.
Loan Facility: EPF provides you the facility to get loan for housing loan, education loan, medical loan etc.
Death Benefit: If an employee dies, the EPF deposits are paid to his family.
Which plan is better for you?
It depends on your personal needs and financial goals.
if you:
If you are employed and want to save for retirement, then EPF is a good option for you.
Want to earn more interest and increase your retirement savings, you can make additional contributions to VPF.
conclusion
Both EPF and VPF are great investment options that provide you good returns and tax benefits.
Depending on your needs and goals you can invest in any of these schemes.
pay attention:
This information is for general information only.
Before investing in any scheme, you should always consult a financial advisor
