Understanding the Difference between EPF and PPF: A Comprehensive Comparison

TrackMyPF by Finnable, Download for Smarter PF Management


When it comes to planning for retirement and building long-term financial security, individuals often rely on investment options like the Employee Provident Fund (EPF) and the Public Provident Fund (PPF). Both EPF and PPF are government-backed savings schemes designed to help individuals accumulate funds for their post-retirement years. While they share similarities in their objective of financial stability, there are significant differences between the two schemes. In this comprehensive guide, we will explore the distinctions between EPF and PPF, including their features, benefits, eligibility criteria, and tax implications, to help you make informed decisions about your financial future.

Understanding EPF and PPF:

  1. Employee Provident Fund (EPF):

The Employee Provident Fund (EPF) is a mandatory savings scheme introduced by the Indian government to provide financial security to employees post-retirement. Under this scheme, both the employer and the employee make monthly contributions towards the employee’s EPF account. The primary objective of EPF is to create a retirement corpus for employees by building savings over their working years.

  1. Public Provident Fund (PPF):

The Public Provident Fund (PPF) is a voluntary savings scheme launched by the Indian government to encourage individuals to save for their long-term financial goals. Unlike EPF, which is primarily aimed at salaried employees, PPF is open to all residents of India, including self-employed individuals and professionals. PPF offers attractive interest rates and tax benefits, making it a popular choice for individuals seeking a secure investment option.

Nature of SchemeRetirement-focused savings scheme for salaried employeesLong-term savings scheme for various financial goals
Eligibility CriteriaEmployees in organizations with 20+ employeesOpen to all residents of India, including minors
Contribution LimitsUp to 12% of basic salary; employer matchesMin. Rs. 500 annually, max. Rs. 1.5 lakh per financial year
Interest RatesDetermined by government, compounded annuallyDetermined by government, compounded annually
Withdrawal RulesPartial withdrawals for specific purposesPartial withdrawals after lock-in period
Tax BenefitsContributions eligible for tax deductions (Section 80C)Contributions and interest tax-free (Section 80C)

TrackMyPF app by Finnable:

You can also track your EPF balance and growth using the TrackMyPF app by Finnable. Power Up Your PF Management with TrackMyPF by Finnable:

  1. You can now track your PF growth and make informed retirement decisions.
  2. You may streamline your record keeping and gain access to all your PF info effortlessly.
  3. Understand eligibility and navigate the withdrawal process with clarity.
  4. Keep a check on your current PF balance and monitor progress towards retirement goals.

It’s a one stop tool for all the information you require for your PF account

Download the TrackMyPF App – Available on iOS & Android!


While both EPF and PPF serve as effective savings instruments for long-term financial planning, they cater to different segments of the population and have distinct features and benefits. EPF is tailored for salaried employees, offering a retirement-focused savings platform with mandatory contributions from both employers and employees. On the other hand, PPF is open to all individuals and provides flexibility in contribution amounts and withdrawal rules, making it suitable for a wider range of investors. By understanding the differences between EPF and PPF, individuals can make informed decisions based on their financial goals, risk tolerance, and investment preferences.

In summary, EPF and PPF complement each other as part of a diversified investment strategy, enabling individuals to build a robust financial portfolio while securing their future retirement needs. Whether you’re a salaried employee looking to maximize your retirement savings or a self-employed individual planning for long-term financial goals, both EPF and PPF offer valuable opportunities for wealth creation and financial security in the years to come.


Frequently Asked Questions (FAQs):

Finnable has set a required minimum age for personal loan of 21 years for individuals to be eligible for a personal loan. This ensures that applicants have reached legal adulthood and are capable of entering into a financial agreement.

Yes, Finnable understands the financial needs of young borrowers and offers personalised loan options tailored to their specific requirements. Whether it's financing higher education, purchasing essential items, or starting a business venture, Finnable provides support to young individuals seeking financial assistance.

Borrowers nearing retirement may have unique financial needs, such as retirement planning, medical expenses, or supporting their children's education. Finnable offers personalised loan solutions that consider the specific circumstances of pre-retirement individuals, helping them meet their financial goals.

Unfortunately, no. Finnable does not, at the moment, offer any loans to senior citizens. Currently, 60 is the maximum age for personal loans set by Finnable

Other than personal loan age limits, Finnable considers various other factors for determining loan eligibility. These factors may include the applicant's income, credit score, repayment capacity, and employment stability. By assessing these aspects comprehensively, Finnable ensures that borrowers across different age groups can access the loan products that best suit their financial needs. 


Amit Arora

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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