Public Provident Fund (PPF) vs Voluntary Provident Fund (VPF)
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Navigating retirement planning poses the challenge of finding the best avenue for returns while balancing risk. When comparing PPF vs VPF, it’s crucial to understand the unique benefits and features they offer.
The voluntary provident fund is an extension of the Employee Provident Fund (EPF), allowing employees to contribute more from their salary for retirement benefits. On the other hand, the public provident fund is a government-backed savings scheme open to all individuals, providing fixed returns with tax benefits.
Comparing PPF vs VPF: Key Highlights
Particulars |
VPF |
PPF |
Eligibility |
Salaried employees |
Indian residents |
Rate of return |
8.15% p.a. (FY 2023) |
7.10% p.a. (FY 2024) |
Lock-in period |
5 years |
15 years |
Taxability |
Up to ₹1.5 Lakh |
Up to ₹1.5 Lakh |
Withdrawal |
Complete and partial VPF withdrawal allowed |
Partial withdrawal permitted after 5 financial years; Complete withdrawal at maturity |
Contribution |
No limitations on minimum and maximum contribution |
Starting from ₹500 to ₹1.50 Lakhs per financial year |
Accessibility |
Automatically deducted from the salary and managed by EPFO |
PPF account can be opened at designated banks and post offices |
Disclaimer: The above-mentioned rates are subject to change at the discretion of the concerned issuing body.
