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





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


Up to ₹1.5 Lakh

Up to ₹1.5 Lakh


Complete and partial VPF withdrawal allowed

Partial withdrawal permitted after 5 financial years; Complete withdrawal at maturity


No limitations on minimum and maximum contribution

Starting from ₹500 to ₹1.50 Lakhs per financial year


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.


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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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