Detailed comparison of PPF (7.1% tax-free) and Employee Provident Fund (EPF) (8.25 (FY 2023-24)%) to help you choose the right investment.
| Year | Deposit | Interest | Balance |
|---|
| Feature | PPF | EPF |
|---|---|---|
| Returns | 7.1% p.a. (guaranteed) | 8.25 (FY 2023-24)% |
| Lock-in Period | 15 Years | Till retirement (partial withdrawal allowed) |
| Tax on Returns | Fully Tax-Free (EEE) | Tax-free if withdrawn after 5 years of service |
| Section 80C | Yes (up to ₹1.5 lakh) | Yes (employee contribution up to ₹1.5 lakh) |
| Risk Level | Zero (Govt backed) | Zero (Government backed) |
| Liquidity | Low (partial after 7 years) | Low (linked to employment, partial withdrawal for specific purposes) |
| Best For | Long-term tax-free guaranteed growth | Salaried employees for retirement savings |
EPF has higher rate but is only for salaried employees. PPF is voluntary and available to everyone including self-employed.
See how much your PPF investment can grow over different tenures:
| Yearly Deposit | Total Deposited | Interest Earned | Maturity Value |
|---|---|---|---|
| ₹500/yr | ₹7,500 | ₹6,063 | ₹13,563 |
| ₹1,000/yr | ₹15,000 | ₹12,121 | ₹27,121 |
| ₹2,000/yr | ₹30,000 | ₹24,241 | ₹54,241 |
| ₹3,000/yr | ₹45,000 | ₹36,363 | ₹81,363 |
| ₹5,000/yr | ₹75,000 | ₹60,606 | ₹1,35,606 |
| ₹10,000/yr | ₹1,50,000 | ₹1,21,215 | ₹2,71,215 |
| ₹12,000/yr | ₹1,80,000 | ₹1,45,455 | ₹3,25,455 |
| ₹15,000/yr | ₹2,25,000 | ₹1,81,823 | ₹4,06,823 |
| ₹20,000/yr | ₹3,00,000 | ₹2,42,428 | ₹5,42,428 |
| ₹25,000/yr | ₹3,75,000 | ₹3,03,036 | ₹6,78,036 |
| ₹30,000/yr | ₹4,50,000 | ₹3,63,638 | ₹8,13,638 |
| ₹40,000/yr | ₹6,00,000 | ₹4,84,858 | ₹10,84,858 |
| ₹50,000/yr | ₹7,50,000 | ₹6,06,070 | ₹13,56,070 |
| ₹60,000/yr | ₹9,00,000 | ₹7,27,283 | ₹16,27,283 |
| ₹70,000/yr | ₹10,50,000 | ₹8,48,497 | ₹18,98,497 |
| ₹80,000/yr | ₹12,00,000 | ₹9,69,708 | ₹21,69,708 |
| ₹90,000/yr | ₹13,50,000 | ₹10,90,925 | ₹24,40,925 |
| ₹1,00,000/yr | ₹15,00,000 | ₹12,12,139 | ₹27,12,139 |
| ₹1,20,000/yr | ₹18,00,000 | ₹14,54,569 | ₹32,54,569 |
| ₹1,50,000/yr | ₹22,50,000 | ₹18,18,208 | ₹40,68,208 |
PPF offers 7.1% guaranteed tax-free returns with a 15-year lock-in, while EPF offers 8.25 (FY 2023-24)% returns with Till retirement (partial withdrawal allowed) lock-in. PPF has EEE tax status making it fully tax-free, whereas EPF: Tax-free if withdrawn after 5 years of service.
EPF has higher rate but is only for salaried employees. PPF is voluntary and available to everyone including self-employed.
Yes, you can invest in both PPF and EPF. However, the combined Section 80C deduction limit is ₹1,50,000 per year. Many investors diversify across both instruments to balance risk and returns.
PPF is backed by the Government of India and carries zero risk with guaranteed returns. EPF has zero (government backed) risk. If capital preservation is your priority, PPF is the safer choice.
PPF has EEE status — deposits, interest, and maturity are all tax-free. EPF Section 80C: Yes (employee contribution up to ₹1.5 lakh). Tax on returns: Tax-free if withdrawn after 5 years of service.