This scheme is for retirement, getting more than PPF


This scheme is for Voluntary Provident Fund retirement, getting more interest than PPF You do not need to open a separate account to invest in VPF. Apart from this, the interest earned on it is also tax free under section 80C. If you work and want to make a big fund till retirement, then Voluntary Provident Fund can be more beneficial than Public Provident Fund ie PPF.

Voluntary Provident Fund

In this scheme (Voluntary Provident Fund Scheme), more interest is being received than PPA. You do not need to open a separate account to invest in VPF. Apart from this, the interest earned on it is also tax free under section 80C. Let us tell you that the facility of VPF is available only to the job seekers.

Voluntary Provident Fund is a scheme of Employees’ Provident Fund Organization (EPFO). Under this scheme (Voluntary Provident Fund Scheme), employees can deposit any part of their salary in this fund as per their wish. This deposit should be more than the maximum limit of 12 percent PF mandated by the government. An employee can contribute up to 100% of his basic salary to VPF.

VPF is getting more interest than PPF

At present, more interest is getting on this than PPF. At present, 7.1 percent interest is being available on PPF and 8.50 percent on VPF. You can increase or decrease your investment in it and can close it anytime. Where you can invest up to a maximum of Rs 1.50 lakh in a year in PPF (Voluntary Provident Fund). There is no investment limit in VPF. How much can you invest in it?

Benefits of VPF Scheme

The interest on VPF account is same as that of EPF. Like EPF, VPF (Voluntary Provident Fund) funds can also be transferred on change of job. VPF gets the benefit of tax deduction under Section 80C of the Income Tax Act.

Like EPF, investment made in VPF account also comes under EEE category, that is, investment in it, interest earned on it and money received on completion of maturity period is completely tax free. Withdrawals can be claimed online. For partial withdrawal of money from VPF account, the account holder needs to work for five years, otherwise tax is deducted. Its entire amount can be withdrawn only on retirement.

Quick money will be double than PPF

This special rule of finance is the rule of 72. This decides in how many days your investment will double. You can understand this in such a way that if you invest in PPF and here you get 7.1 percent interest annually. So, under Rule 72, you have to divide 7.1 by 72. 72/7.1 = 10.14 years, i.e. your money in PPF will double in 10.14 years.

Whereas the interest rate in VPF is 8.50 percent. You have to divide 72 by 8.50. 72/8.50 = 8.47 years i.e. your money in VPF (Voluntary Provident Fund) will double in 8.47 years. This means that your money in VPM will double from PPF 1.67 years ago.

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