What is the difference between EPF, PPF and GPF? How much interest you get, know everything here (EPF, PPF और GPF में क्या होता है अंतर? कितना मिलता है ब्याज, यहां जानिए सबकुछ)

 Provident fund is a retirement plan. From government employees to private employees in the organized sector, there are different provident funds. These are the best instruments for long term investment. There are three types of provident funds. First Employees Provident Fund (EPF), Public Provident Fund (PPF) and General Provident Fund (GPF). Fixed amount is deposited in these accounts every month. Let us know what is the difference between the three provident funds and how much interest is being received in EPF, PPF and GPF schemes.

What is the difference between EPF, PPF and GPF? How much interest you get, know everything here

There are three types of provident funds. First Employees Provident Fund (EPF), Public Provident Fund (PPF) and General Provident Fund (GPF). Fixed amount is deposited in these accounts every month.

रEmployees' Provident Fund (EPF) includes those companies where more than 20 employees work. Meaning, EPF is opened for the salaried people. Private sector employees are also included in this. The account is regulated by the Employees' Provident Fund Organization (EPFO). Every employee has his own Provident Fund account. In this, a certain part is deducted from your salary. Along with this, an equal share is also put in this account on behalf of the employer. For the financial year 2020-21, the interest rate on EPF has been fixed at 8.50 percent. However, it has not been notified yet. Till the last financial year, 8.65 percent interest was available on EPF. Interest on EPF is calculated on an annual basis. It is notified by the Ministry of Labor.

PPF is the small savings scheme of the government. This scheme is for the general public. Anyone can deposit money by opening an account in it. It is a type of savings fund. You can open PPF account in any post office or banks. You have to deposit at least Rs 500 every year in PPF account. The amount deposited in this account gets the benefit of deduction of income tax under section 80C of the Income Tax Act. For the April to June quarter 2020-21, it will get 7.1 percent interest. Interest on PPF is calculated on a quarterly basis.

Provident Fund (GPF) account is for government employees. GPF is only for government employees. It is a type of retirement planning. Because, its amount is received by the employee after retirement. Government employees can contribute up to 15 percent of their salary to the GPF account. The 'Advance' feature of this account is the most special. In this, the employee can withdraw the fixed amount from the GPF account if needed and can deposit it later. There is no tax on this either. The government has reduced the interest rate of GPF to 7.1 percent for the quarter from 1 April 2020 to 30 June 2020. In this scheme also interest is fixed on quarterly basis.

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