VPF - Voluntary Provident Fund

Voluntary Provident Fund, VPF is a traditional provident fund saving scheme where the applicant holds power to control and allot a particular amount of provident fund as a fragment of VPF contribution. It is one of the best saving options letting the subscriber increase his size of savings portfolio and make a perfect long terms investments plan for better future.

Eligibility criteria

The VPF is an extension of Employee Provident Fund scheme. An individual is allowed to add 12% of the contribution aspect that smears to their traditional EPF accounts.

Further, VPF is an option only for salaried individuals who receive a monthly salary to their account. Other people belonging from different sectors can open a Public Provident Fund account in their nearest local post office or bank.

VPF account interest rates

The interest rates earned by VPF applicants are decided by the Government of India each year. The rates were set to 8.75% in the financial year 2014-15.

The VPF account further benefits employees in tax deduction U/S 80 C of Income Tax Act. Thus, adds to the interest rates while the workers end up earning more.

Benefits of VPF

The major advantages of VPF include first the tax saving benefit for employees can opt for deductions up to 1 lakh. Further, it has ample interest rates to offer its applicants. The workers find it the safest option for investment for future for its simplicity and government control.

It is one of the potent options to save or invest for a healthy future during retirement. Moreover, the sum can easily be shifted while changing jobs which ensure flexibility to an employee while switching among jobs.

VPF calculator

The calculator uses the inputs like basic monthly salary, the contribution of % of wages you plan to contribute to VPF account, interest rate, monthly contribution to EPF, Employers contribution and current EPF balance to help you find the best PF payment strategy.

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