Differences between EPF and PPF - Fusion - WeRIndia

Know the differences between EPF and PPF

Know the differences between EPF and PPF

Employee Provident Fund (EPF) and Public Provident Fund (PPF) are two of the most common financial instruments used by people to save money for retirement fund. Even though both of them have similar purpose, they are both quite different.

EPF is a fund for a salaried individual. It is authorized only to them. However, PPF on the other hand can be opened by anyone whether they have a salary income or business income. That is not the only the difference between the two funds. Read on to know more.

In the case of EPF, there is no lock in period. One can hold the account till the salary is credited. The invested amount is paid at the time of resignation of the job or retirement whichever is earlier. In case of PPF, the maturity of the account will be after 15 years. However, it can be extended up to five more years.

If you withdraw the EPF amount before 5 years of employment with the same employer, it is subject to tax. EPF qualifies under 80C of Income Tax act. PPF also qualifies under section 80C. On the maturity amount there is no tax.


Interest on EPF is 8.75 percent for the year 2015-2016. On the other hand, the interest rate for PPF is 8.7 percent.

If you have an EPF, then you can apply for a loan for the only reasons provided by EPFO with suitable documents. At the same time, PPF users can apply for loans up to 50 per cent of the balance of the 4th year from 6th year onwards.

In case of EPF, individuals who have an amount can withdraw money for personal needs without providing any necessary documents. On the other hand, individuals who opened a PPF cannot withdraw money until the tenure is completed.

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