comparison between EPF, PPF vs GPF

In order to meet the requirements of post-retirement, one needs to start planning decades before. The safest way to create funds for retirement is provident fund. Though there are 3 kinds of PF Employee's Provident Fund, Public Provident Fund, and General Provident Fund each one being very different from the other although not many people understand their difference.
Image result for comparison between EPF, PPF vs GPF
The basic difference between the three are:
1. In EPF investment is made by both employee and employer. In PPF investment is open and can be opened by any individual and in GPF it is only for government employee and only the employee makes a contribution.
2. 12% of basic salary and D.A contributed by employee and employer in EPF. In PPF from Rs. 500-1.5 lac. In GPF minimum 6 % of emoluments up to basic salary.
3. The interest rate for 2017-18 for EPF is 8.55%, for PPF and GPF is 8%.
4. EPF and PPF have a lock-in period of 5 and 15 years respectively. In GPF contribution continue till 3 months prior to retirement.

5. EPF account can be closed in case individual is unemployed for 2 or more months. PPF can be closed only after 5 years in case of medical emergencies or education. GPF can be closed only when the employee leaves government employment.
Additional Reading: -Basic comparison between EPF vs PPF vs GPF

Comments

Post a Comment

Popular posts from this blog

EPF: 5 Facts You Should Know Before Investing

Image
EPFO governs Employee's Provident Fund , and every salaried employee is eligible to enjoy this scheme. If your company is having more than 20 employees, then the EPF Act is applicable, and even if the number falls later, then the provident fund will continue to be deducted from your salary. The interest rate of the provident is declared by EPFO every year. You and your employer are equally involved in the contribution, and the percentage of the amount that gets deducted from your salary is the same contribution that your employer will make. The lock-in period of Employee’s Provident Fund is five years which means if you can enjoy the tax benefit only if you are in the service for consecutive 5 years. In case you switch your job, you can transfer your existing Employee’s Provident Fund account to your new employer to enjoy tax-free fund. Premature withdrawal is tax-free only after the lock-in period. SOURCE
Read more

All you need to know about Aadhar Card Loan

Along with the other identity proofs, after April 2010, we also have an Aadhaar card with a unique Aadhaar number. So when we hear the phrase " Loan on Aadhaar ", many of us might think that a loan on Aadhaar means that we can borrow money using our aadhaar cards, just like a loan on credit cards, this is not true.  In fact, as of yet, it is not possible to get a loan by using just your UIDAI-issued identity card. But yes our aadhaar cards do help us in getting a loan from any bank or NBFCs along with other supporting documents. Though our Aadhaar card is not proof of our citizenship but has a lot of our details attached to its database, this facilitates the bank or other financial organization in the verification process of the borrower and therefore reducing the time and documentation involved during the entire transaction.
Read more

What is minimum credit score can you have?

Image
A good CIBIL Score is important when you apply for loans and credit cards. CIBIL score ranges between 300 and 900. Every lender accesses your CIBIL score before they offer you a loan. As, these scores gives the lender an idea about your creditworthiness, previous payment track record, previously applied loans as well as debts applied.  A credit score above 650 is considered good in order to get instant loan approval. On the other hand, any credit score below 650 is considered a bad score that means you would not be eligible to apply for any loans to meet your financial requirements. Generally, a credit score lies between 300 and 900. The better the loan, better are your loan approval chances. The score closest to 900 is considered good to avail loans on lesser interest rates from lenders whereas if your credit score is below than this is not good and it shows that you are not eligible to apply for loans or credit cards. There are some factors that influence your credit score are
Read more