There are many types of Provident Fund schemes in the country. These include Employee Provident Fund (EPF), Public Provident Fund (PPF), General Provident Fund (GPF). Crores of employed people in the country are associated with some kind of Provident Fund account. These schemes related to the Provident Fund work to secure the life of a person after retirement at the financial level. However, employees have to invest regularly in these schemes. After retirement, these schemes ensure the financial security of the employee's life. Often many people are confused about the difference between EPF, PPF, and GPF. If you do not know about the difference between them, then today we are going to tell you about this. Let's know -
What is EPF
The Employee Provident Fund Scheme is being operated for people working in the private sector. This scheme is being operated by the Employees Provident Fund Organization.
In this, the employee working in the private sector has to invest 12 percent of his basic salary and dearness allowance every month. Apart from this, the employer also has to deposit the same amount in the account. After retirement, the money deposited in EPF works to secure the future of the employee.
PPF
The Public Provident Fund is a very popular scheme in the country. Any Indian citizen can start investing by opening an account in the PPF scheme. The maturity period of the PPF scheme is 15 years. At present, you are getting an interest rate of 7.1 percent on investing in this scheme.
GPF
GPF i.e. General Provident Fund Scheme is being operated for central employees. The interest rate received under the General Provident Fund Scheme is ensured every quarter. In this, the account holder has to deposit at least 6 percent of his salary in the GPF account every month.
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