Introduction
The Employees’ Provident Fund (EPF) and the Public Provident Fund (PPF) are two of the most popular long-term investment options available to Indian citizens. Both of these investment options offer attractive tax benefits and are backed by the Government of India. However, there are some differences between the two, such as the interest rate offered and the amount of money that can be invested. In this article, we will compare the EPF vs PPF interest rate for 2019 and discuss the advantages and disadvantages of each.
EPF vs PPF Interest Rate 2019
The interest rate for EPF and PPF in 2019 is 8.65%.
The present interest rate on EPF for the financial year 2018-19 is 8.65%, and the interest rate on PPF is 7.9% until December 2019. When compared to the Public Provident Fund (PPF), Employee Provident Fund (EPF) gives more interest.
Which is Better EPF or PPF
EPF is a mandatory scheme for every employee when their monthly basic salary is 15000 or below 15000 Rs. Where is PPF is the self-interest of the person.
EPF is definitely a good scheme for employees, here along with employee even employers will also contribute another 12% (3.67% for PF and 8.33% for pension).
If you are not an employee and still want to invest some money in the provident fund to get tax exemption under section 80C then PPF is a good option.
Finally, If you are an employee then EPF is the best option, if you are not an employee and working on your own then you must choose either PPF or NPS.
Note: Employees can simultaneously contribute to both EPF and PPF if they want to get some tax exemption.
EPF vs PPF Interest Rate 2019
The Employees’ Provident Fund (EPF) and the Public Provident Fund (PPF) are two of the most popular long-term investment options in India. Both of these funds offer attractive interest rates and tax benefits, making them attractive to investors. But which one is better? Let’s take a look at the EPF vs PPF interest rate for 2019.
EPF Interest Rate 2019
The EPF interest rate for 2019 is 8.65%. This rate is applicable to all EPF accounts opened before 1 April 2019. The EPF interest rate is revised every year by the Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO).
PPF Interest Rate 2019
The PPF interest rate for 2019 is 8%. This rate is applicable to all PPF accounts opened before 1 April 2019. The PPF interest rate is revised every year by the Ministry of Finance.
Conclusion
Both the EPF and PPF offer attractive interest rates and tax benefits. However, the EPF interest rate is higher than the PPF interest rate for 2019. Therefore, if you are looking for a long-term investment option with higher returns, the EPF is the better option.
