Choosing the right savings scheme for long-term plans, like retirement, can be challenging considering the various options available in the market. Two such investment avenues are the Public Provident Fund (PPF) and Employee Provident Fund (EPF). 


PPF offers tax benefits and assured returns, allowing flexible deposits and tax-free interest. Meanwhile, EPF features employer contributions and enforced savings, fostering disciplined saving habits and compound interest benefits.


When comparing PPF vs EPF, you must understand that both instruments promise financial security in retirement, and cater to different preferences and needs.

Key Differences Between PPF and EPF

Here’s a table outlining the differences to help compare EPF vs PPF:




Issuing entity

Employees’ Provident Fund Organisation (EPFO)

All major Public Sector Banks (PSBs) and Indian Post Offices

Account Type

Savings-cum-retirement account

Savings-cum-tax-saving investment


To create an avenue for retirement corpus building

To build wealth and earn tax-savings on contributions

Interest Rate

8.25% (for FY 2024)

7.10% (for FY 2024)


Until employee reaches 58-years of age

15 years (lock-in period); extendable in five-year blocks

Minimum Contribution

12% of the employee’s basic salary + equal contribution by the employer



Salaried employees of firms registered under EPF Act, 1952

Indian residents

Withdrawal rules

  • 75% of the corpus can be withdrawn during unemployment 

  • Remaining 25% can be withdrawn after 2 months of being unemployed

  • Complete withdrawal can only be made post retirement

  • Partial withdrawals allowed under certain conditions

  • Complete withdrawal allowed after the completion of lock-in period

  • Partial withdrawal allowed only after 5 years of investment under special circumstances


Amount received at maturity is tax-free

Amount withdrawn after 5 years of investment is tax-free

In conclusion, there's no one-size-fits-all answer when comparing EPF vs PPF. Instead, investors should assess their unique financial circumstances and long-term objectives to determine which instrument aligns best with their needs.



The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

Read More


Can self-employed individuals contribute to EPF?

No, EPF is not applicable to self-employed individuals; it is primarily for salaried employees.

Which offers better liquidity between EPF and PPF?

EPF can be partially withdrawn for specific purposes like education, medical expenses, or home purchase under certain conditions. PPF, on the other hand, allows partial withdrawals after the completion of the sixth year.

Can one contribute to both EPF and PPF simultaneously?

Yes, individuals can contribute to EPF, if they are salaried employees, and PPF simultaneously to diversify their savings.

Is there a maturity period for EPF and PPF?

EPF has no fixed maturity period. It continues until the individual retires or is unemployed. However, PPF has a maturity period of 15 years, which can be extended in blocks of five-years.

Loan Offer
Download App