What is the difference between EPF and PPF?

Employee Provident Fund, EPF is also commonly known as Provident Fund, PF. It is the arrangement for the salaried individuals where a stipulated part of their salary is deducted and kept in their EPF account.

Public Provident Fund is a scheme open to those who don’t have a regular Salary. One can voluntarily decide to open it and manage it. Mostly, PPF is for the consultants, freelancers, or even the people who don’t have an assured income.

Any individual can open a PPF account with the assistance of nationalised banks or post offices that handle PPF accounts.

Employees who earn a basic salary of up to Rs. 15,000 contribution to EPF is mandatory. Typically 12% of the Basic, DA, and cash value of food allowances has to be contributed to the EPF account.

You need to deposit a minimum of 500/- in order to open the account. The maximum amount you can deposit per annum is 1,50,000.

You receive the annual interest of 8% in a PPF account. This rate is revised periodically by the Central Government.

The accumulated amount in the EPF is paid at the time of retirement or resignation. It can be transferred from one account to another in case of a change in jobs. How to transfer EPF Balance? 

In PPF premature withdrawal is not allowed.

The amount received after the maturity period is completely tax-free.

Investment in PPF is eligible for deduction under section 80C. And the interest earned on PPF account is completely tax-free.