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.

Disclaimer

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. 

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FAQs

Are both PPF and VPF government-backed?

Yes. PPF is a government-backed savings scheme with capital protection and a sovereign guarantee, while VPF extends from another government-backed retirement savings scheme called Employee Provident Fund (EPF).

Can I open a PPF account independently, or does it require employment?

Yes, you can open a PPF account independently; it's not employment-linked, available to both salaried and non-salaried individuals. Whereas, VPF is an EPF extension, limited to salaried EPF members.

Can I avail of loans against my PPF or VPF contributions?

Loans can be availed against PPF balances from the third year onwards, subject to certain conditions and interest rates. Unlike PPF, VPF does not offer the provision for loans against contributions.

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