A lot of young professionals today understand and know the importance of having the right retirement plan. However, given the wide variety of investment options, the selection of the desired retirement plan can be a bit confusing. For investors, who don't wish to put themselves through a massive risk profile, provident fund schemes like the PPF, VPF or EPF, can be great options.
The awesome part is that these schemes are incredibly secure and assure stable returns throughout. As a result, they are ideal for people with long term investment goals like merely saving for the retirement plan. If you understand the difference between the available schemes, it gets relatively more accessible for you to pick the best scheme. So, here we at Savepro will help you see through the differences between VPF and PPF and based on that, you can decide which one of these schemes is most beneficial for you. However, before we jump to the difference, let us understand in brief, what is VPF and PPF. 1. PPF PPF is the Public Provident Fund. It is a scheme that isn’t related to your employer. So, PPF is a government offered scheme. It assures you a fixed return and is targeted towards helping people develop a retirement portfolio. Both non-salaried, as well as salaried individuals, can invest in PPF account. 2. VPF VPF is the Voluntary Provident Fund. It is a voluntary scheme that lets the employees make a voluntary contribution to their PF account after giving away 12% as per the EPF guideline. The interest rate in both EPF and VPF is same, and employees can contribute up to 100% of their salary. Differences between PPF, and VPF a) Applicability In the case of a VPF, only salaried working professionals can invest in this. On the other hand, in the case of PPF, everyone is eligible to open a PPF. You can avail a PPF facility in almost every bank and post office. Further, you can also start your PPF account online. All you've to do is to visit the website of the bank wherein you wish to open the account.Follow the process that follows, and you are ready. b) Contribution For the VPF, the employer has the right to contribute any amount up to a maximum of 100% of their salary and dearness allowance. On the other hand, for the PPF account, the contribution is voluntary, but it has an upper capping of 1.5 lac for a year. c) Returns At present, the interest rate that you get by banks on the PPF account is 8.7%. Since the interest that you get on PPF investment is related to a decade of government bond yields, you’ll experience a change in the interest rate, now and then. For the VPF, the interest rate that is currently offered by the bank is 8.75%. However, here again, there is a revision seen in the interest rate almost every year. d) Investment Duration For the PPF, the duration of the investment is 15 years. Once this period ends, you can further invest your period of investment to another five years. For the VPF, the account stays active until the time you resign or retire. If you happen to make a job switch, your account can be easily transferred to another employer. Related Information - Basic Questions to Ask Before Investing In a Mutual Fund e) Tax Benefits The returns that you get from the investment in PPF are exempt from tax under Section 80C. On the other hand, the gains from the VPF post the maturity are eligible for a deduction as per the Section 80C. Please note that for you to get a deduction, it is essential that you worked with your employer for at least five years. f) Loan Facility The best plausible benefit of the PPF is its loan facility. If you have a PPF account, you can quickly get a loan against investment. If you need a loan, you can apply for it post the completion of 3 years of the investment. The maximum loan amount that you can get is equivalent to 25% of the remaining amount towards the end of the second year. Further, a second loan can also be availed before the completion of the 6th financial year of the investment. Please know that you can apply for the second loan only if you have repaid your first loan. On the VPF, partial withdrawal is permitted, and mortgage can be availed up to 100% of the amount. Making the Decision To be able to accentuate your retirement portfolio, it is a good idea to invest in both VPF and PPF. For opening an account of PPF online, you can opt for any of the top banks in India that gives you this facility. For any more queries, feel free to contact us anytime! Also Visit Listly For More Info
16 Comments
8/20/2022 08:30:27 pm
Neden NestaCloud.com? Biz her zaman müşteri memnuniyeti odaklı çalışan bir ekip olduk. bu sebeple sorun yaşasanız dahi elimizden geleni yapıp çözüme erdiriyoruz. Memnuniyet sağlamak için kar oranımızı göz ardı ediyoruz. Sizinle çalışmayı NestaCloud ailesi olarak çok isteriz.
Reply
8/21/2022 01:16:26 pm
DonghuaTR İle Türkçe Animeler Ve Donghualar yani Türk Anime seçeneklerielinizin hemen altında! İstediğiniz içeriği En yüksek kalitede izleyebilirsiniz. Hızlı ve çalışkan ekibimiz her gün yeni bölümleri ışık hızında siz değerli kullanıcılarımıza sunar.
Reply
9/25/2022 03:27:53 pm
En güncel urfa haber için sitemizi ziyaret et! Site adresi https://haberurfadan.com/
Reply
10/5/2022 01:23:07 pm
Güvenilir takipçi hizmeti arayanlar için en ucuz takipçi satın almak için özenle hazırlanmış paketler sunuyoruz. Bu paketleri kullanmak için adresimizi ziyaret edebilirsiniz.
Reply
10/6/2022 06:42:57 pm
istanbul kepenk tamiri sitesidir! Kepenk tamiri hizmetleri için ziyaret et! https://kepenktamiriistanbul.net/
Reply
10/22/2022 03:36:35 pm
Most used DHgate discount codes. Free Shipping at DHgate - No Coupon Required; Shop $30 off at DHgate; Receive $10 off with this Discount Code; Shop $24
Reply
12/20/2022 10:00:52 am
İnstagram takipçi satın almak istiyorsan tıkla.
Reply
1/7/2023 12:07:22 pm
100 tl deneme bonusu veren siteleri öğrenmek istiyorsan tıkla.
Reply
6/28/2023 05:36:58 pm
En iyi adıyaman ilan sitesi burada. https://adiyaman.escorthun.com/
Reply
Leave a Reply. |
Archives
January 2020
Categories |