• EPF (Emplyee’s Provident Fund), it is a government-established savings scheme for employees of the organised sector. The scheme was introduced under the Employee’s Provident Fund and Miscellaneous Act, 1952, for the benefit of employee after his retirement. 
  • The Employee Provident Fund (EPF) is a retirement benefits scheme in which employees of an organisation contribute a small portion of their basic pay monthly. In the same line, the employer also contributes a similar amount on their behalf towards the scheme.
  • National Pension Scheme (NPS) and Public Provident Fund (PPF) are both government-backed retirement saving schemes. They both encourage you to regularly save funds to secure your post-retirement life. 
  • (NPS) National Pension Scheme, PPF (Public Provident Fund) these are popular investment schemes. Investors who are exploring retirement plan, looking for stable return and Income tax benefits while opting these investment options.
  • PPF is an age-old government-funded investment scheme that has been popular among investors with a long investment horizon. For best results, one needs to stay invested in the scheme for 15 years!


Employees’ Provident Fund Organisation offers EPF or PF for salaried class.

In this employee and employer both contribute 12 % of the basic salary plus Dearness Allowance P.M in this fund. EPFO provides interest against individual account. In this interest on principle amount and fund are tax- free. Current EPF or PF rate is 8.5 %


  • In this employer and employee both contribute the 12 % of the employee’s salary and dearness allowance to employee’s PF account every month
  • The employee contributes the total 12% of his EPF Account as employer contribute 8.33% to Employee Pension Scheme and remaining 3.67% to the Employee Provident Fund Account 
  • Employee can only open one account during his lifetime, in case of changing in the job the previous employer should transfer the amount to new employer.
  • Every employee is allotted a unique Universal Account Number (UAN) by the Employee Provident Fund Organisation (EPFO). The employee’s EPF account is linked with the UAN which is valid throughout the employee’s life. Also, employees need not apply for the transfer of their EPF accounts when switching between jobs.


  • Promotion and encouragement of voluntary compliance.
  • Scheme provides a benefit to employee by saving his part of the salary on monthly basis.
  • Claim settlements to be reduced from 20 days to 3 days.
  • The interest rate under this scheme is fixed by Employee provident Fund office, current rate under EPF is 8.5%p.a.
  • Amount which is to be received by the employee and interest accrued on the amount which is to be collected is tax free.
  • In case of death of the account holder, the nominee or legal heirs can withdraw the amount.  


PPF or Public Provident Fund is a government-supported savings scheme. It is open to everyone – employed, self-employed, unemployed, or even retired. It is not mandatory and anyone can contribute any amount to the PPF subject to a minimum of Rs 500 and a maximum of Rs 1.5 lakh per year. It has a fixed return which is set by the government every quarter. You can open a PPF account with the post office or most major banks. The PPF interest rate is reviewed every quarter. The current PPF interest rate is 7.1%.

Any citizen of the country is eligible to open Public Provident account. Central gov. Decides the interest rate. PPF scheme has a locking period of 15yrs.But withdrawal can be made in certain cases. Current PPF rate is 7.10%


The Public Provident Fund Scheme is a statutory scheme of the Central Government of India.

The Scheme is for 15 years.

The minimum deposit is 500/- and maximum is Rs. 1,50,000/- in a financial year.

The individual who opened an account under this scheme can withdraw the partial amount after the completion of 5 years.


  • Under PPF rate of interest is decided on a quarterly basis individually. The current rate of interest i.e.  FY-2021 – 2022 is 7.1%
  • Investment made under this scheme is totally risk free, as the interest is paid by the government.
  • Investment under PPF offers a deduction of Rs.1.5 lakhs under Section 80C in a financial year.
  • The investor can also take loan against the amount deposited under this account after the expiry of 3rd year to 6m
  • Deposits in PPF qualify for rebate under section 80-C of Income Tax Act.
  • The interest on deposits is totally tax free.


National Pension Scheme (NPS) is a government-sponsored pension scheme. It was launched in January 2004 for government employees. However, in 2009, it was opened to all sections. The scheme allows subscribers to contribute regularly in a pension account during their working life.

Anyone aged between 10 to 60 years can invest in National Pension Scheme. Pension Fund Authority of India manages the NPS. Contribution in then NPS is tax-free as stated in section 80 of the Income Tax Act. In this withdrawal can be made after the depositors turn 60 years.

A portion of the NPS goes to equities (this may not offer guaranteed returns). However, it offers returns that are much higher than other traditional tax-saving investments like the PPF.


  • NPS scheme holds immense value for anyone who works in the private sector and requires a regular pension after retirement. The scheme is portable across jobs and locations, with tax benefits under Section 80C and Section 80CCD.
  • With NPS, you have the provision to change the pension scheme or the fund manager if you are not happy with their performance. This option is available for both tiers I and II accounts.
  • Pension fund regulatory Authority of India is regulatory authority for National Pension system
  • The eligibility for investing under this scheme is any Indian Citizen between the ages of 18 to 60 years can invest.
  • The Investment made under National Pension System will be invested into 4 different classes such as equities, corporate bonds, government bonds and alternative assets.


  • The Investor can partially withdraw the amount from the account opened under this scheme after the expiry of 3 years.
  • The investor can also claim the tax benefit of Rs.1.5 lakh under Section 80C of the income tax act.
  • Low Cost: NPS is Lowest cost pension scheme, administration and fund management fees are also low.
  • Flexible: Applicant can choose own investment option and Pension Fund or select auto choice to get better returns.
  • Portable: Applicant can operate account from anywhere in the country .The amount can be shifted to any other sector like Government sector, corporate model in case the subscriber gets then employment.
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