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EPF vs PPF: Which One Should You Choose?

Both the Employees’ Provident Fund (EPF) and the Public Provident Fund (PPF) are popular savings schemes in India. While both help you build a retirement corpus with tax benefits, they differ in terms of eligibility, contributions, returns, and liquidity.

At IndiaLends, we believe in guiding you towards smart financial planning—whether you’re saving for the future or applying for a personal loan. Here’s a complete comparison of EPF vs PPF to help you make the right choice.

EPF vs PPF: Quick Comparison

Feature	EPF (Employees’ Provident Fund)	PPF (Public Provident Fund)
Eligibility	Salaried employees in companies with 20+ staff	Any Indian resident (salaried, self-employed, unemployed)
Contribution	12% of basic salary + DA from employee; equal contribution from employer	Minimum ₹500, maximum ₹1.5 lakh per year
Interest Rate	~8.25% (declared annually by EPFO)	~7.1% (declared quarterly by Govt. of India)
Lock-in Period	Till retirement (58 years); partial withdrawal allowed	15 years; extendable in blocks of 5 years
Tax Benefits	Section 80C + tax-free interest & maturity (EEE)	Section 80C + tax-free interest & maturity (EEE)
Liquidity	Partial withdrawals allowed for education, marriage, home, medical	Partial withdrawals allowed after 7 years
Management Authority	EPFO (Employees’ Provident Fund Organisation)	Post office & authorized banks

Which is Better: EPF or PPF?

Choose EPF if:

You are a salaried employee in an organization covered under EPFO.
You want employer contribution benefits (extra savings).
You want slightly higher returns compared to PPF.

Choose PPF if:

You are self-employed, freelancer, or not covered under EPFO.
You want a safe, government-backed investment with flexibility.
You want to open an account for yourself or your child.

Tax Benefits of EPF vs PPF

Both EPF and PPF enjoy Exempt-Exempt-Exempt (EEE) status under Indian tax laws:

✅ Contributions qualify for deduction under Section 80C.
✅ Interest earned is tax-free.
✅ Maturity proceeds are fully exempt from tax.

👉 For detailed EPF tax rules, visit the EPFO official portal.
👉 For latest PPF rules, check Ministry of Finance updates.

IndiaLends Insight

If you are a salaried employee, EPF is a compulsory and better option due to employer’s contribution.
If you are self-employed or unemployed, PPF is your best bet for safe retirement savings.
Both schemes can be used together—EPF for mandatory retirement savings and PPF for voluntary savings.

Need liquidity while keeping your savings untouched? Consider an instant personal loan from IndiaLends to cover short-term financial needs.

Frequently Asked Questions (FAQs)

1. Can I invest in both EPF and PPF?
Yes. Salaried individuals can contribute to EPF and also open a separate PPF account.

2. Which offers better returns: EPF or PPF?
Currently, EPF offers slightly higher returns (~8.25%) compared to PPF (~7.1%), but rates vary.

3. Can self-employed individuals open an EPF account?
No. EPF is only for salaried employees covered under EPFO. Self-employed can only invest in PPF.

4. Is premature withdrawal allowed in both EPF and PPF?
Yes. EPF allows partial withdrawal for specific purposes like marriage, home, or medical needs. PPF allows partial withdrawal after 7 years.

5. Which is safer: EPF or PPF?
Both are government-backed and safe, but PPF is voluntary and flexible, while EPF is mandatory for eligible employees.

Apply Now

Want to secure your retirement with safe investments? Choose the right option between EPF vs PPF based on your profile.

Need funds immediately without breaking your savings? Get an instant personal loan from IndiaLends and cover your expenses with ease.

EPF vs PPF: Which One Should You Choose?

﻿﻿EPF vs PPF: Which One Should You Choose?

EPF vs PPF: Which One Should You Choose?