Are you near your retirement time or want to pre-planned your retirement to avoid facing any obstacles in the future? If that’s the case, then considering these three comprehensive three Government-Backed retirement plans would be an excellent option for you. But, even after considering them, you are still indecisive; here, you have PPF vs EPF vs VPF account guidelines. Moreover, similarly to the relevance of retirement planning for financial stability, you must have a VPF calculator to ease all the bulky calculations. But before this, if you are a VPF applicant, then you must have a VPF account. Apart from this, you must know that countries like India provide viable options like provident funds for long-term savings.
Hence, the three major of them are Employee Provident Fund (EPF), Voluntary Provident Fund (VPF), and Public Provident Fund (PPF). Furthermore, to keep accurate records of different financial objectives and circumstances such as taxation, withdrawal & calculation, you must try an EMI calculator only at calculatoremi.com. So, without further delay, let’s begin the PPF vs PF vs VPF account online guidelines.
EPF: A Mandatory and Risk-Free Retirement Savings Scheme
- Firstly, EPF is a mandatory retirement savings scheme for salaried employees in organizations registered under the EPFO.
- The employee and employer contribute to the EPF account, totaling 24% of the employee’s basic salary and dearness allowance.
- The EPF offers a guaranteed rate of return and tax-free interest earnings.
- Contributions done by the employee are eligible for tax deductions under Section 80C of the Income Tax Act.
- Partial and complete withdrawal options are available, subject to specific conditions like unemployment for two months.
VPF: Enhancing Retirement Savings Beyond EPF
- VPF is an extension of the EPF, allowing salaried employees to voluntarily contribute additional funds to their EPF accounts.
- The tax treatment and withdrawal rules for VPF accounts are the same as EPF, offering tax benefits and tax-free interest earnings.
- VPF is ideal for individuals who seek to increase their retirement savings beyond the mandatory EPF contribution.
- It suggests visiting the VPF calculator at the official EMI calculator website. So you can fetch accuracy on your VPF account in the race of PPF vs EPF vs VPF.
PPF: A Long-Term Savings Scheme with Tax-Free Returns
- Firstly, PPF is a government-backed savings scheme available to all Indian residents.
- The tenure of a PPF account is 15 years, extendable in blocks of 5 years after maturity.
- As per Section 80C of the Income Tax Act, Contributions to PPF are voluntary. And eligible for the taxpayers for tax deductions.
- Further, it offers a slightly higher interest rate of 7.1% per annum than others. Also, the ability to compound annually makes it an attractive long-term savings option.
- Partial withdrawals are allowed from the 7th financial year onward, offering flexibility for emergencies and financial goals.
What are the Pros and Cons of PPF vs EPF vs VPF Accounts?
- Firstly, EPF offers a guaranteed rate of return and is risk-free. Which makes it an excellent retirement-focused investment option.
- Next, VPF provides an opportunity to improve retirement savings to VPF account holders. But keep in mind that it is restricted to only salaried individuals.
- Lastly, PPF offers a higher interest rate, which you can calculate via an EMI calculator. And the best part is that it is open for both salaried and non-salaried individuals. However, it has a long lock-in resisting period.
How to Choose the Right Provident Fund Scheme from PPF vs EPF vs VPF?
First and foremost, it depends upon your individual financial goals, risk appetite, and employment status while choosing between EPF, VPF, and PPF. Moreover, EPF is mandatory for salaried individuals, and VPF can be considered for additional contributions. On the other hand, self-employed or non-salaried individuals can benefit from PPF Calculator, given the attractive returns and flexibility after the lock-in period.
Provident funds are essential tools for securing your financial future. But bringing clarity plays a relevant role in understanding EPF, VPF, and PPF . Doing so will help you make an informed decision that fits your unique financial objectives & circumstances. Moreover, always take consultation with financial experts to ensure whether your investment decisions are going in the right direction or not. To avoid miscalculations of your VPF account online records, use a VPF calculator at EMI Calculator. Hence, you will feel well-informed and optimized regarding your retirement goals.