When you think of investments, many options come to mind, including the names of stock exchange, bank FD, and EPF-PPF. There are many other schemes that one can invest in, but in terms of safety and long-term, EPF and PPF are considered the best options. Recently, there has been a change in the interest rates of EPF. The returns have also started as per the new interest rate. In such a situation, let us know which of the two is the best option in terms of returns.
The claim is available on the new interest rate
The EPFO ​​has started approving claims at the new interest rate. Pension Fund Buddy itself has given this information through social media. The pension fund body said in the
Let us tell you that on February 10, 2024, EPFO ​​had fixed the interest rate at 8.25 per cent for 2023-24. The interest rate for the last year (2022-23) was 8.15 per cent, while for 2021-22 the rate was 8.10 per cent, which is the lowest since 1977-78 when the interest rate was 8 per cent.
This is the condition for EPF
You cannot deposit money yourself. In this case, a part of your salary is deposited by the company every month. Part of it is also deposited by the employer, where the company deposits part of your salary and part of it itself into your PF account, on which the government pays interest. This is how your pension fund is prepared. With its help, you can create wealth in the long term.
Relief is also available on the tax front.
You also get tax benefits by investing in EPF. By investing, you get the benefit of deduction provided under section 80C. The limit for section 80C is Rs 1.5 lakh. Apart from this, your entire investment is tax-free. Guaranteed returns are available in EPFO. Recently, the EPFO ​​Board decided to give an interest rate of 8.1 per cent for the financial year 2021-22. Last year, it was 8.5 per cent.
PPF is an option for the self-employed
The government had created a Public Provident Fund for those who are not working. Any Indian citizen can be a part of it. Currently, 7.1% interest rate is available on PPF. Its decision is taken on a quarterly basis. The interest rate on EPFO ​​is decided annually. It can be opened in any bank or post office. The minimum investment can be Rs 500 and maximum Rs 1.5 lakh. The lock-in period for this is 15 years. In case of emergency, a part of this fund can be withdrawn.
