New Delhi: Employees’ Provident Fund (EPF) or PF, National Pension Scheme (NPS), Public Provident Fund (PPF), and Voluntary Provident Fund (VPF) are some of the popular investment schemes. Investors, especially those exploring retirement plans, look for stable returns and income tax benefits while opting for these investment options.Also Read - MTV Love School Fame Jagnoor Aneja Dies of Cardiac Arrest in Egypt, Check His Last Instagram Video
PF or Employees’ Provident Fund (EPF)
Employees’ Provident Fund Organization (EPFO) offers EPF or PF for salaried class. Employee and Employer both contribute 12 per cent of the basic salary plus dearness allowance (DA) per month in this fund. EPFO provides the interest against individual account. Interest on the principal amount and the fund is tax-free. Current PF or EPF interest rate is 8.5 per cent. Also Read - PM Modi Reaches US, To Meet Joe Biden and Kamala Harris; Agenda, Schedule Explained
Public Provident Fund (PPF)
Any citizen of the country is eligible to open a Public Provident Fund account. A PPF account can be opened at any post office branch, and bank branch. The central government decides the interest rate. The PPF scheme has a locking period of 15 years. However, withdrawals can be made in certain cases. Current PPF interest rate is 7.10 per cent. Also Read - Tata Punch Unveil On October 4, Expected Price, Bookings, Rivals, Features, Specifications, All Other Details
National Pension Scheme (NPS)
Anyone aged between 18 and 60 years can invest in National Pension Scheme. Pension Fund Regulatory Authority of India (PFRDA) manages the NPS. The contribution in the NPS is tax-free according to Section 80 of the Income Tax Act. The complete withdrawal can be made after the depositors turn 60 years.
Voluntary Provident Fund (VPF)
Salaried employees are allowed to make monthly contribution Voluntary Provident Fund (. They can select the monthly contribution amount but the amount must not be less than 12 per cent. A VPF account is linked with the EPF account. The VPF has a locking period of 5 years. Tax deduction will be applicable if anyone make withdrawal before 5 years. Current VPF interest rate is 8.5 per cent.