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Difference Between Employees Provident Fund and Public Provident Fund

Employees Provident Fund vs Public Provident Fund

Provident funds in India are meant for providing individuals some kind of savings. The EPF or the Employees Provident Fund and the PPF or the Public Provident Fund are two such provident funds that are widely accepted in India. When talking of Employees Provident Fund, it is meant for salaried employees. On the other hand, Public Provident Fund is meant for every person such as the unemployed, employed, house wives and children. When compared to the Employees Provident Fund, any individual can open Public Provident Fund accounts with any nationalised banks or the post office. But a person is entitled to Employees Provident Fund only if he is working. Now comparing the returns, the Employees Provident Fund gives out an increased interest rate. When the Employees Provident Fund gets a person 8.5 per cent, the Public Provident Fund only gives eight per cent interest rate. When looking at taking loans, a person can take loans from the Employees Provident Fund in case of marriage or building a house after producing documents. A person enrolled in Public Provident Fund can take loans up to 50 per cent of the amount of the fourth year from the sixth year onwards.   The Employees Provident Fund can be closed if an employer changes job. An employer can even transfer his Employees Provident Fund account to the new company he is joining and continue it till his retirement. On the contrary, the maturity period of Public Provident Fund is 15 years. The period can be extended for another five years that can be further extended if one wants.  When Employees Provident Fund is good when looking at the contribution side, the Public provident Fund is not good from the contribution side. Summary

  1. Employees Provident Fund is meant for all salaried employees. On the other hand, Public Provident Fund is meant for every person such as the unemployed, employed, house wives and children.
  2. The Employees Provident Fund gives out an increased interest rate when compared to Public Provident Fund.
  3. In case of taking loans, a person can take loans from the Employees Provident Fund in case of marriage or building a house after producing documents. A person enrolled in Public Provident Fund can take loans up to 50 per cent of the amount of the fourth year from the sixth year onwards.
  4. When Employees Provident Fund is good when looking at the contribution side, the Public provident Fund is not good from the contribution side.

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