Differences between VPF and EPF: VPF allows you to save separately from EPF, offers tax benefits under Section 80C and has zero risk.

When a person retires, they have EPF to support their future, while VPF is also an option. Both are reliable options for investors, but many people are unaware of VPF. People often mistake them for the same thing, but understanding the difference is crucial for saving for your future. Therefore, it's important to be aware of them. Today's article is on this topic. We'll explain what a Voluntary Provident Fund is and how it differs from EPF. Learn more in this article...

What is the difference between EPF and VPF?

VPF stands for Voluntary Provident Fund. As the name suggests, it allows you to invest and grow your savings as you wish. So, if you feel that the 12% contribution to your EPF, which is meant for your retirement, isn't enough for your future, you can increase your savings through VPF.

What are the benefits of VPF?

It's worth noting that when investing in this scheme, individuals receive income tax exemption under Section 80C. Since it's a government scheme, the risk is virtually zero. It's worth noting that if you change jobs, your VPF funds are easily transferred to the new company, just like EPF.

How to start investing?

• First, contact your company's HR or payroll department.
• Now you tell them that you want to contribute a part of your salary to VPF.
• Now fill a form and decide the amount of money you want to invest extra every month.
• Once the process is completed, this amount will automatically be deducted from your salary every month and deposited in your PF account.

Note: This money is blocked for a long period  of time. You cannot withdraw it eaisly . Furthermore, keep in mind the most companies only allow  you to change your VPF amount once or twice a year,so choose the amount wisely.

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