Everything you need to know about PPF and EPF

POSTED BY Jagoinvestor ON April 10, 2008 COMMENTS (301)

Everyone wants to spend an easy life without any stress specially related to money. And this is why people are becoming more and more conscious about their savings and investment.

It is good for now that you are working and earning good enough to cover your expenses, but what after your retirement? Have you thought how will you manage your expenses after your retirement?


Let me tell you, there are options like EPF and PPF in which you can invest and save your money which you can utilize after your retirement.

Let’s see each of EPF and PPF in detail. Both are provident fund benefits for retirement.

Employee Provident Fund (EPF)

The Employee Provident Fund is a retirement benefits scheme that is available to salaried employees. Under this scheme, a stipulated amount (currently 12%) is deducted from the employee’s salary and contributed towards the fund.

This amount is decided by the government. The employer also contributes an equal amount to the fund. However, an employee can contribute more than the stipulated amount if the scheme allows for it. So, let’s say the employee decides 15% must be deducted towards the EPF.

In this case, the employer is not obligated to pay any contribution over and above the amount as stipulated, which is 12%.

There are some specific features of EPF which are beneficial for the account holder. These features are as follows –

  • Return on Investment: 8.65%
  • If you urgently need the money, you can take a loan on your PF. You can also make a premature withdrawal on the condition that you are withdrawing the money for your daughter’s wedding (not son or not even yours) or you are buying a home.
  • tax benefit under Sec 80C.
  • The amount if withdrawn after completing 5 years in job will not be taxable.

Public Provident Fund (PPF)

The Public Provident Fund has been established by the central government. You can voluntarily decide to open one. For that you need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis.

You can also open this account if you are not earning. Any individual can open a PPF account in any nationalized bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.

You can take a loan on the PPF from the third year of opening your account to the sixth year. So, if the account is opened during the financial year 1997-98, the first loan can be taken during the financial year 1999-2000 (the financial year is from April 1 to March 31).

The loan amount will be up to a maximum of 25% of the balance in your account at the end of the first financial year. In this case, it will be March 31, 1998.

You can make withdrawals during any one year from the sixth year. You are allowed to withdraw 50% of the balance at the end of the fourth year, preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

For example:

If the account was opened in 1993-94 and the first withdrawal was made during 1999-2000, the amount you can withdraw is limited to 50% of the balance as on March 31, 1996, or March 31, 1999, whichever is lower.

If the account extended beyond 15 years, partial withdrawal — up to 60% of the balance you have at the end of the 15 year period — is allowed.

Watch this video to learn more clearly about PPF and EPF:

Features of PPF:

  • The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.
  • Return on investment : 8%
  • tax benefit under Sec 80C , no tax on the maturity and no tax on interest earned.
  • If you’re involved in a legal dispute, a court cannot attach or question the money in your PPF account.

Who should invest in PPF?

Usually, everyone can invest in PPF but it’s mainly for those people who are very conservative and cant take risks to a great extent.

Anyone who wants to invest in the long term in some secure saving instrument must invest in PPF. To achieve long term goals there are many option like:

  • Mutual Funds (Equity)
  • Shares (Equity )
  • PPF (Debt)
  • Fixed Deposit (Debt)
  •  NSC (Debt)
  •  Others

Out of these, all under the Debt category are safe. PPF is the most recommended if the investment horizon is very long like 15+ years. Because of compounding your money will grow into a big amount.

I would be happy to read your comments or disagreement on any topic. Please leave your queries or doubts in our comment’s section.

301 replies on this article “Everything you need to know about PPF and EPF”

  1. Avinash Singh says:

    I recently had the good fortune of reading your article. It was well-written and contained sound, practical advice.

    1. Jagoinvestor says:

      Glad to hear that!

  2. debora says:

    Great Article. It’s really informative and innovative. keep posting with the latest updates. Thanks for sharing.

  3. Thoudam Danbir singh says:

    Dear sir,In an Unstable suitation i left my organisation on february 2009 and i dint any get second chance to go there for my clearence,but still i tried to widraw my PF through online but uanable to proceed,please help me,,,,My PF number was KN/35119/1111

    1. Hi Thoudam Danbir singh

      To withdraw the EPF, you can always fill up the form 19 and submit it to EPFO office. After few months try to follow up with RTI


  4. VIJAY says:

    Can I have Rs 2 Lakhs pa in EPF and 1.5 Lakh pa in EPF?

      1. Vijay says:

        Sorry for the typogrmistake. My question is whether
        Can I have both EPF and PPF at the same time? Can I have 1.5 Lakh pa in PPF.

  5. SPGupta says:

    Can I nominate both my sons as nominees in My PPF A/C with SBI.

    1. Yes you can do that

  6. Sukesh says:

    Hello Sir,
    It was great reading through all of your articles, need to clarify few thing about ppf, please correct if I am wrong,

    PPF A/C Open date: 28.08.10 (FY 2010-11)
    Loan by date: 01.04.14 (25% of amount on 01.04.13)
    Withdraw by date: 01.04.17 (50% of amount on 31.03.15)
    Where 31.03.15 considered balance prior to addition of interest and 01.04.13 after addition of the interest.
    PPF Maturity Date: 01.04.26
    Thanks in advance.

    1. what is the query here ?

      1. Sukesh says:

        Need to clarify whether the above understanding is correct for the ppf account, for example whether the account opened in FY 2010-11 will have withdrawal facility commence from FY 2017-18 and other details. If correction requires, please do the needful.

        1. Yes, you are correct

  7. Manju says:


    I wish to withdraw my EPF now in Feb 2016 , i have the below queries.
    Q1 : Does i get the EPF interest till Feb 2016 or only till the last Financial Year – March 2015
    Q2 : My job has been terminated which is beyond the control of the member, hence TDS/tax should not be deducted as i have served for only 4.7 years and terminated by employer. I have joined a new company almost 2 years back and had earlier applied for EPF through employer, but the claim settlement has rejected and did not get the reason for rejection and also did not get the rejection letter dispatched.
    Q3 : Whom to contact for reason for rejection.
    Q4 : Does the employer accept if we mention Reason for Leaving the service as – Terminated from Employer.
    Q5 : To withdraw EPF and avoid TDS/tax for EPF amount what all forms to submit – Is it Form 19 and 15G is enough or any other forms to submit, as the EPF amount is above 2.5 Lakhs.
    Q6 : As i don’t have Adhaar card and UAN for the earlier employer, can i submit the forms in regional EPFO office without Employer signature or can be submitted through employer only.
    I have UAN for the current employer only.
    Q7 : How much time will it take to get the EPF amount to my bank account now.


    1. Please ask short query

  8. hitesh kumar says:

    Hello sir , I am 30 years old . i am a salaried person . I wana save my rupees only only through VPF account .i wana deposit 10000₹ every month . is this good for me ? I don’t take any risk .

    1. Yes, you can go for VPF option !

  9. nipuldas says:

    I worked in a company from March 2014 to September 2014 (7 months) and join new company from October 2014 to July 2015. Now I am self employed. My question is can I withdraw the pf amount only from 2nd company? Pls. advise me. Sir, my 1st company is closed and I dont know my epf account no. Therefore I want to withdraw my 2nd company’s epf amount. Can I do it?

  10. DIVAKAR says:



    1. If you break it in between, you will get the money but it would be taxable before 5 yrs !

  11. Divakar says:

    I want to know about the maximum about that an employee can deduct from his salary.
    OR how much % of of maximum amount can be deducted in EPF as per rules and guidelines made.
    and also is this amount considered from Basic Pay or from full gross payment monthly??

    1. You can get any amount get deducted to EPF . Its called VPF

  12. Prince says:

    the interest rate is 8.7 % , not 8%…please do correct it.

    1. Thanks for correcting that.

  13. Kinjal Dodia says:

    Dear Sir,

    Can EPF balance accrued in a company can be transferred to PPF account

  14. AMOL says:

    Many Thanks Manish for your valuable feedback…..


  15. kavaljit says:

    hi, i have a question— i have already resigned from my job and applied for my EPF to encash. however i want to open a PPF in the meanwhile. can i open? will my opening of PPF will have any affect on my EPF encashment with a new system of UAN in picture now?

    1. Hi kavaljit

      There is no relation between PPF, NPS and EPF

      1. kavaljit says:

        thank you manish for clearing my doubt. god bless

  16. Aman says:

    May start from Oct-2014

  17. Aman says:

    Is Tax is deducted on EPF. I heard that Tax is deducted on amount of EPF a/c

    1. I assume you are talking about TDS ?

  18. AMOL says:

    Dear Manish,

    Thanks to you to increase my financial literacy.

    I am in 8th year of my PPF account having balance of 3 Lacs at the end of 7th year of my PPF account.

    To take advantage of 80C can I withdraw 50% (i.e. 1.5 Lacs) in 2nd week of March-15 & again deposit the same amount in 3rd week of March-15.

    1) Can I repeat the same process (of withdrawal & again deposit) in next consecutive years also to avoid other investments for income tax benefit..??
    2) Do I have any interest loss due to this?
    3) Can I make one withdrawal in each financial year till I complete the tenure of 15 years…..or there are any restrictions on withdrawal…

    Pl. guide & share your view, which matters a lot for me.


    1. Amol

      1. Yes you can do that

      2. No you will not loose any interest

      3. You can withdraw each year if you wish

  19. venkatasiva says:

    If the person who is investing in ppf was died without complete 15 years what will happen to that invested money??
    Plz clear my doubt

    1. Hi venkatasiva

      Family can claim that money back

  20. Baaz says:

    Dear Mr Manish,
    I am a seeking your clarification regarding PPF:-
    I opened a PPF account with RS 1 lakh on 04 Jun 2014 with SBI (my savings account is linked).
    As I understand my account shall mature on 01 April 2030. Is this correct?
    Now If I were to invest Rs 1.5 lakh before 05th of April of every year from 2015 to 2029, what would the effect on :-
    1. original maturity date of 01 Apr 2030?
    2. I would have invested ((1 lakh + (1.5*15)) = 23,50,000/- (1.5 lakh from 2015 to 2029) what would be the maturity amount assuming a fixed rate of interest of 8% (hypothetical)?
    3 Would the maturity amount be tax free?
    4. Will I derive tax benifit of Rs 1 lakh in FY2014-15 and Rs 1.5 lakh every later FY till 2029-30 (assuming no changes in taxes rates, again hypothetical and certainly unwelcome)?
    Kindly help me in this understanding.

      1. baaz says:


      2. baaz says:

        Dear Mr Manish,

        I also found this excel sheet that is closer to solving the problem that I had posted above.

        Please allow me to share with your readers who are sure to benefit.


        Here is the link :-



  21. prachiti manoj pawar says:

    hello manish, i would like to ask you my ppf year is 11 so how i withraw money from a/c

    1. You will have to take it in your saving bank account, but filling up the form at the time of PPF maturity !

  22. Jitu says:

    Hello Manish,
    I have opened PPF a/c a few months earlier. Also i came to know that in EPF there is pension scheme after retirement which i think not in case of PPF.?Is there any pension scheme in PPF if so how can i avail it at age of retirement or otherwise i should switch to EPF? Please suggest.

    1. There is no pension scheme in PPF , you can learn more about EPF pension scheme here – https://www.jagoinvestor.com/2012/05/epf-facts-employee-providend-fund.html

  23. Vaun says:

    Should EPS amount be withdrawn before 10 years of service? What is the best way to go about it? The pension that you will receive from EPS after retirement is hardly anything.

    1. Yes, its not that big amount, if your EPS is very less, but if you work for 20 yrs and your EPF/EPS amounts are quite good , then even Pension amount can be respectable . Its your personal choice what you want to do in this case, keep it or withdraw-and-invest it !


      1. Vaun says:

        Great, thanks Manish !

    2. monotosh_mondal says:

      FOR 10C..

      1. Vaun says:

        Thank you monotosh_mondal ! Also, yes it’s best to transfer EPF, I agree.

  24. monotosh says:

    after 15 years what is the procedure
    to get the PPF amount…

    1. Yea it will be transferred to your SBI account . You will have to fill up a form for this .


  25. veeramani m says:

    dear sir iam having ppf account now i am working in one form whether i can open an epf account pl inform

  26. Paresh Mehta says:

    I already have an PPF account in my name as well as in my wife and 2 daughter’s name.

    Now, the company where I am working has started opening EPF accounts.

    Kindly advice if it is mandatory to open an EPF account even if I already have 4 PPF accounts and also advice the pros and cons for the same



    1. There is no relation between PPF and EPF .

      EPF is mandatory

      1. Paresh Mehta says:

        Thanks Manish

    2. Paresh

      EPF and PPF have no relation to each other .. EPF opening has nothing to do with PPF

  27. joydeep choudhury says:

    Sir, what is the waiting period for PPF loan? Although the lock period is 15 years, can I exercise the pre withdrawl option before maturity in case of fund emergency? If so, Sir, after how many years and what are the documents I need to produce ? Thanks and waiting for your guidance .

    1. Yes you can pre maturely withdraw the money . You can do it after 6 yr . You can get 50% of money which was before 2 yrs balance


  28. Yoginder Kumar says:

    How long I can keep my EPF fund with the PF authorities after my retirement along with getting the interest on it ? when will it become compulsory for me to withdraw it?

    1. there is no compulsion to withdraw it ever !

      1. Ram says:

        Hi Manish, The interest accrual stops after 3 years of no contribution. If i stop working when I am 60, my contribution to EPF will stop then. If I don’t withdraw the epf before i turn 63, the EPF corpus will stop earning interest after that. Is there a way to continue to get interest until I withdraw the corpus. Only way I can think of is to continue to work at least part time and continue the PF contribution until retirement even post 60. Is this your understanding?

        1. Hi Ram

          From what I understand this “interest accurual only if EPF is active” is applicable only till 60 yrs of age anyways. Because after that the pension will start ! . However you should check with EPFO directly on this.

  29. Anupam says:

    I’m defense employee.I have a pf account.can I open a ppf account also…..????

    1. Yes you can open PPF also . there is no relation between PPF and EPF

  30. Subhash Mittal says:

    Dear Manish,
    I am making contribution in EPF for 30000 ( say) so can I invest 150000 in mine PPF? totalling the CONTRIBUTION and INVESTMENT under PF accounts= 30000+150000=180000?. or
    I cannot contribute and invest in both these Provident Fund Accounts more than 150000 as per Budget of FY 2014-15? or
    I can go for 180000 but i will get income tax deduction on 150000 under 80c. or
    I cannot exceed 150000 and if I did ,then the exceeding amount would come back to me or I hav to contact bank for reversal?

  31. Pradeep says:

    I heard that if we contribute for more that 10 years for EPF, we cannot withdraw the money even after quitting the job. Is that true ? Are there any rules governing the withdrawl of EPF after job quitting ?
    Will the money accummulated in EPF given as lumpsum at the time of retirement or as pension ? If as pension, how is it calculated ?

    1. Its true only for the EPS part and not EPF !

  32. Chetan Ambi says:

    Very nice and clear explanation on EPF and PPF. Tnx for the article !!

  33. Mustafizur Rahaman says:

    Hi Manish or anyone who wishes to answer,

    One quick question. The 15 year maturity period for PPF is that whatever amount I am investing year after year, the aggregate amount would be available for withdrawal after 15 years? OR, every year the money I am investing is eligible for withdrawal after it’s 15th year?

    1. ALl the money will be available for withdrawal , After 15 yrs of opening the account 🙂

  34. pradeep sharma says:

    The Employee Provident Fund, is a retirement benefit scheme that is available to salaried employees.Under this scheme, a stipulated amount (currently 12%) is deducted from the employee’s salary and contributed towards the fund. This amount is decided by the government.The employer also contributes an equal amount to the fund.

    However, an employee can contribute more than the stipulated amount if the scheme allows for it. So, let’s say the employee decides 15% must be deducted towards the EPF. In this case, the employer is not obligated to pay any contribution over and above the amount as stipulated, which is 12%.

    1. Thanks for sharing that Pradeep

  35. rochit says:

    Dear ,
    Which will be the best policy in POST Office to invest for short and long term for good returns?

  36. Yogesh Kumar says:

    Hi People,
    After reading on your blogs and my little investigation about financial instruments, I am confused between RD and PPF. please help me to clarify the confusion. Please leave your comments on my email ID mbayogeshbansal@gmail.com, if it is possible for you?

    1. What is the confusion here ?

  37. Nazir says:

    Hello Manish,

    I have been following Jagoinvestor for some time and it is quite informative. Thanks for the nice work.

    I have a query regarding EPF. I understand there is an upper limit on the employee EPF contribution which is 1 Lakh. Will I be able to make EPF employee contribution more than 1 Lakh. What will be the Employer part contribution on such case and how will be taken this into EPF accunt on such case. The reason i ask this question is that my 12% basic is more than a lakh and i am just curious what will happen. I wasn’t able to get any answer from google.

    Appreciate your effort on spreading financial awareness among the community.

    Thanks. – Nazir

    1. there is no restriction like that . Its only the restriction on 80C (1 lac max) , if you have 1.5 lacs of EPF , then you will have to pay tax on rest 50k . Thats all the rule says . another rule is that employer will contribute equal amount in EPF from his side (upto 12% of basic)

      1. Nazir says:

        Thanks Manish

  38. Amaresh Nabar says:


    Just came across your website and find its content written in a language that is simple to understand. I am someone who is a beginner relating to aspects of finance, but am sure by following this website my level of awareness about finance will be increased and make me an informed person.

    Thanks and regards,

    Amaresh Nabar.

    1. Good to hear that Amaresh !

  39. Amandeep Kaur says:

    I have opened two PPF accounts on the name of my two minor kids on January 2013 2000/- per month in each a/c .how much amount i get back after 10 years.

  40. sanjoy says:

    Hi, Manish,
    Thnx for giving such a good info to us.
    Pls let me clear in one thing related to PPF..I want to open a ppf act in SBI. If I invest 50k for a Ist yr..should I cntn with same amt for every year, or I can deposit as per my convinience but of course keeping in mind not less than 500/-.

    1. You can change the amount eveyr year. . min 500 and max 1 lac in any given year !

  41. sushant pawar says:

    I am worked with the company for five months (5 Months) so i want to withdraw the money can I do that please suggest

    1. Before 6 months , you cant withdraw

      1. sushant pawar says:

        My company closed all the branches so I lost my job so i am requesting them to give me my PF. no. But they are refusing to give my Pf. no. so what should I do? please suggest

  42. Girish says:

    Awesome article. Thanks a ton Manish.

  43. bemoneyaware says:

    Employee Provident Fund(EPF) scheme was set up to give substantial benefit to the employee at the time of retirement. Under the scheme a specified sum is deducted from the salary of the employee as his contributions towards the fund. The employer also contributes the same amount. Under the provisions of Income tax laws, withdrawal from the PF account by an employee without rendering continuous service for five years or more to the employer attracts tax. It is be taxable in the hands of the individual as if the fund was not recognised from the start of the contributions
    For details on EPF withdrawl before 5 years one can read Tax on EPF withdrawal

    1. Thanks for that comment bemoneyaware !

      1. bemoneyaware says:

        Thanks to you. Jagoinvestor has had a great hand in making me money aware.

  44. tsundara says:

    Hi Manish, what in case :
    1) I open a new PPF account on Jan 2013, and deposit Rs.10000
    2) Completely forgot about my PPF in 2014
    3) In Jan 2015, I remember about it and want to start depositing.

    How do I proceed in the case of a “gap”?

    1. In that case you need to pay a penalty of Rs 50 for each year you forgot along with Rs 500 for each missed year . and then you can continue !

  45. RAJESH KUMAR says:

    I want to know that can I deposit some amount above Rs. 500/- on monthly basis in a year in PPF account.

    1. bemoneyaware says:

      Regarding investment amount:

      You need to deposit a minimum of Rs. 500 per year in a PPF account.
      Maximum amount which you can deposit in a PPF account is Rs. 100,000. (Earlier limit was Rs 70,000 it was increased to 1 lakh from 1.12.2011 )
      Deposit amounts should be in multiple of Rs. 5.
      You can deposit lump sum or multiple installments. However, maximum number of installments in a year can not be more than 12.
      Amounts can be deposited in cash, cheque or via demand draft. If you are depositing a cheque or demand draft, then the date of deposit that will appear in your PPF account will be the date of cheque clearance and not the day you present the cheque.

      More details on PPF are in our article Understanding PPF

  46. Paras says:

    Dear Manish

    My PPF Account opening date was (01-04-1997) it will mature on (01-04-2013) 15yr. If i invest Rs.100000 in PPF on (01-12-2012). Can i withdraw this amount on 01-04-2013 ? I will claim this amount in my income tax ?

    1. You can do that , but note that you will have to first fill up a form which says that you want to extend your PPF with “contribution” . But you will be able to withdraw only 60% money in next 5 yrs, see this article in detail – https://www.jagoinvestor.com/2012/06/ppf-account-rules-after-maturity.html

  47. himanshu rathore says:

    I already have a PF account created by the employer, part of salary + employer contribution goes into that.. do i still need to open a separate ppf account ??

    Also, i have noticed that companies do not deposit the ppf amount as soon as they deduct it from your salary, they do it after 5-6 months and sometime only at the end of financial year..
    In this case what to be done as it will be a loss for the employee on interest if the money is deposited at the end of financial year but deducted from salary every month.

    1. PPF and EPF is totally seperate. your company EPF has nothign to do with PPF

      1. Himanshu says:

        thanks Manish,

        but as i mentioned ,i have noticed that companies do not deposit the ppf amount as soon as they deduct it from your salary, they do it after 5-6 months and sometime only at the end of financial year..
        In this case what to be done as it will be a loss for the employee on interest if the money is deposited at the end of financial year but deducted from salary every month. ???

        1. Himanshu

          Yes if you are loosing interest on the money, then better ask about it to the company !

  48. Ramakrishna says:

    If I invest 10000 a year in PPF Account, how much I will get after 15 years

  49. HImanshu says:

    have there any change in rate of interst, during the term? 15 years.?

  50. lovenish says:

    thanks for such useful info…

  51. amit says:

    I want to know if a employ leave a company after 3 years of service and apply for EPF return then he should get amount only in EPF or the amount in pension fund also refund it or not as the employ deduction goes to EPF (12%) but the employee contribution goes to (4 %) in EPF and (8%) in pension fund so if employ leave the job after only three year so he will get only EPF fund or also pension fund.

    1. He will get both EPF and EPS , but it will be taxable , before 5 yrs !

  52. GG says:

    Hi Manish,

    Can you please tell us , how we can check the balance in our EPF/PPF account if we are deputed to onsite and can’t check offical website as to check that, we need to PPF deposited form alst 3 months,

  53. Madhu says:

    Hi Manish,
    Thanks for your inforamtion.

  54. Deepak says:

    …also saw very educative video on how the PPF interest is calculated.

  55. Deepak says:

    Most of us rush for the PPF in the last quarter of a FY, please suggest – if we should / shouldn’t do in the first quarter itself…..

      1. Deepak says:

        thanks plz, link serial 166 too – rgds

  56. Arvind Hatkar says:

    Hi Manish
    I want to open PPF account in the name of my daughter 7 year old. To open PPF account I went to SBI, they said that you need to have PAN card for your daughter. I have applied for PAN card. Then I went to SBI for to open PPF account with all documents along with PAN card. Then they said that there is a problem if you open PPF account of minor, system is not showing Transactions. Finally they said that in SBI you can not open PPF account in the name of MINOR. They are not answering my any question. Then I went to another branch, again the branch manager said me the same thing. I do not understand what is wrong? who is wrong? please let me know what should I do?

    1. Arvind

      There is no issue like that ,you can open the PPF for minor and you will be the guardian . Ask them for the written explaination and check with them if you can forward it to RBI or banking ombudsman , they will move !

    2. Subramanian R says:


      I have opened a PPF for my minor daughter in SBI


  57. Kashish Gupta says:

    I am 21, an engineer, applied for PAN on http://www.tin-nsdl.com followed by requisite hard copies & been allotted PAN while the PAN Card is under process with NSDL for preparation & despatch; my question please:-
    “can I now open PPF A/C with SBI w/o waiting for the PAN hard copy (since NSDL has online given my PAN) & invest before 31st Mar”

    1. Kashish

      I think they will ask for PAN Card Photo copy , how will you give that ?

      1. Kashish Gupta says:

        thanks Manish…got PAN Card today by courier…rgds

        1. Nice, which means you will be able to now apply for it

  58. Dharmanand Pant says:


    1. if I invest 60,000 on March 2012, will tax exemption be on 60,000 or 60,000+interest.
    2. Is interest compound ?

  59. Dharmanand Pant says:

    Hi Manish,

    I want to invest in PPF. I have a few questions.

    1. If I invest 60,000 in Feb 2012, will the complete amount be exempted for my tax calculation. I am already paying 37,500 towards LIC. My salary package is 3.4 K.
    2. If I keep investing 60,000 yearly for 15 yrs (and not withdrawing anything until the maturity) what will be the total amount i will get.
    3. How much time it can take to open an PPF account.

    1. Dharmanan

      1. Yrs

      2. Do your calculation yourself , its a easy calculation

      3. few hours if you go to right place with right documents ..

  60. rajesh singh says:

    hi manish,
    gud to c u to help people.
    i hve a Qn about ppf
    1)can i deposit uneven amt every year eg.2000 ist year 4000 2nd year.
    2) is it compulsory to deposit 500 every year.
    3)can i withdraw all money after 15 year.
    4)is ppf a gud option for tax saving.
    with regards.

    1. Rajesh

      1. Yes
      2. Yes (but if you dont do it , you will have to pay penalty later)
      3. Yes
      4. There cant be a “YES” or “NO” for this ..

      1. Naval Shah says:

        In this caase (poit 2) why penalty??

        and how much???

        1. If you dont deposit Rs 500 per year, . then yu pay Rs 50 penality for each year

  61. vijay says:

    hello manish sir,
    amazed to see you helping every one. thank u so much.
    i want to know, i want to invest some amount monthly and want my investment back after ten year. is it be good to invest in ppf if no, then where should i invest.
    secondly does they charge us some money if we with draw money before 15 years in ppf

    1. Vijay

      PPF has a lock in of 15 yrs.. but you can take out money partially after 6yrs ..


  62. Virender Virdi says:

    Hi Manish,

    I am an avid reader of your blog and great suggestions from you. Just wanted to know if it is good to have the EPF transferred or withdrawn while joining a new company. What are the pros and cons.

    1. VIrender

      You should transfer it to new company , that would be good from long term perspective .. but even withdrawing and then reinvesting it in PPF or some other long term product is good .. Just make sure you dont withdraw and use it for unneccessary thing


  63. Vaibhav says:

    Hi Manish,
    I have some doubts rearding PPF account.
    1. What is the blocking period of the PPF account ?
    2. What is the procedure to get maximum benefits for the account , depositing montly or in the month of march or in the month of april of the same financial year ?

    1. Vaibhav

      1. 15 yrs
      2. Depositing in the starting of the year in Mar


  64. mehatajreshma says:


    I just need a clear knowledge of EPF & PPF such as EPF benefits , loan benefits ,retire ment benefits, how to withdraw pf amount and how much amount i will get after withdrawing. And i also need terms & conditions of withdrawing pf amount. And as well as ESIC too.


  65. sushil k kamat says:

    Respect sir

    I want to invest my money for the 3 or 3.5 year. please suggest you me best plan for my childern after 3.5 yr I want to long term invest

    kindly suggest me best plan for me


    1. Sushil

      What is your risk appetite ?


  66. Alok Ranjan Tripathy says:

    Hi Manish,
    Thank u for your Valuable information.
    my query is about withdrawn premature ppf plz clear my doubt i.e “premature ppf allowed to with drawn 50% of the balance at d end of 4th year , preceding d yr in which d amt is withdrawn or end of the preceding yr which ever is lower ” i don’t getting this plz confirm me details by giving an example.

    1. Alok

      Suppose you start PPF account in 2010 , then you can only start withdrawing after 2014 . Now the rule is if you want to withdraw in year X , then you can withdraw only 50% of the balance at the end of X-2 year . so if you want to withdraw in 2020 and your balance is 10 lacs , but if your balance in 2018 was 2 lacs , then you can only withdraw 50% of 2 lacs , which is only 1 lac


  67. kausik s says:

    Manish, Today my friend talk about ppf account. I have no idea , and i visit ur blog and know everything about ppf account not to even asking my friend or my boss, very useful/helpful information ,, Thanks

    1. Kaushik

      Good to hear that . read more and you will learn more soon !


  68. Anish says:

    Hi Manish,

    Thank you for your valuable information.
    Here is my query. What happens if, say after 5 years, something happens to me and am not able to continue my contribution to PPF? Will my family have to wait for 15 years to get back the whole money I have deposited?


    1. Anish

      Your PPF can be withdrawn before the lock in period , incase of your DEATH .

      You need to contribute 500 every year to continue the PPF account


      1. Anish says:

        Thank you for the info Manish!


  69. saurabh says:

    Hi Manish,

    Very useful article u have written. I would like to know the total return amount after 15 years if i would invest 1000 in a year consistently.


  70. Ananda Kumar says:

    Its good and explained to the roots.
    Keep us updating

  71. Ramesh says:

    Hi Manish,
    My PF withdrawl claim was submitted to Mumbai Bandra office during Jan 2011, but till date it is not processed ? My colleages reasigned after me, got their PF, they have received their amount. My status claim is always shows it is under processing. Raised a grevience and sent mail to RTI but there is no reply/status update. What shall I do to get my money back ? I know, this not an appropriate forum to ask but, if you guide me, it will be very much helpful.

    1. Ramesh

      Actually my personal PF is also pending 🙂 .. i have not done anything till now. you said you filed an RTI application , what happened to that ? There should be some response for that ?


      1. Manish Awasthi says:

        WOW…… PF is pending for finacial coach like u dats intersting…………..

  72. Prasun says:

    Hi Manish,

    Thanks 4 ur blog.

    If i cannot deposit money online, is there any option to change ur PPF account to different banks and different states when u get transfered?

    1. Prasun

      IN that case yes, you can transfer PPF to the city where you reside


  73. tulsi says:

    hi ,

    can i deposit every month some nominal amount towards PPF. What are the with drawal process..

    1. Tulsi

      Yes you make payments every month .. no issues .. note that you can withdraw your money only after 6 yrs ..

  74. Don says:

    Hi Manish
    Can I open a PPF account, through online. (without even going to the Bank)

    1. Don

      No , you will have to go to the Bank/PO once atleast

  75. Vinay Joshi says:

    Hi Manish,

    I’m contributing around Rs. 3000 per month towards VPF since May 2011. Kindly let me know the withdrawl rules for VPF. That is, till when, the money in VPF will be locked in? Also let me know if there is any problem if I stops making contribution to VPF. In that case, how long will I continue to get intrest on the sum accumulated in VPF.

  76. Gaurav Garg says:

    hi manish…
    the content you provided was very helpful. will yu plz tell me whats the minimum required age to open this ppf account??
    reply soon.

    1. Gaurav

      Any one can open a PPF account , if its a minor (less than 18 yrs) then there should be a guardian


  77. madan says:

    What happens to PPF account after maturity? does is still continues or we have to open new account.

    1. Madan

      You can again continue it blocks of 5 yrs for any number of time .


      1. Mansi says:

        You are a champ…Yaar


  78. Paresh says:

    Dear Mr. Manish,
    Thanks for the great info…!!!

    I’ve no PPF account yet, but I’m looking for that. There are 99.99% info I’ve gathered about PPF, still one thing confuse me, If I open PPF account and starting investing every year. But what if I’m not able to invest in one year? PPF will accept this break? And can I started investing from very next year?

    Pls. guide.

  79. Sohan Sharma says:

    I worked in BSL Project,Field Mechanical DnII,Sundernagar.H.P during 1972-76.I have only an EPF deduction slip Ref.No. HL-26D/1143. I have approached the authorities to release the amount due to me. It seems they have difficulty in tracing. Please advise as to how this ref.no.can help.The authorities,however have been able to authenticate my Service Book record.
    Sohan Sharma

  80. Nikhil says:

    Hi Manish,

    Wanna to know more abt EPF, as I heard that if you invest more than 12% of ur Basic Salary then that amt will be consider under taxable slab, is it correct ?

    1. NIkhil

      Yes ,. your contribution of 12% towards EPF is not taxed as it falls under 80C .


      1. Nikhil says:


        12% is by default by Govn, my que is that if we contribute more than 12%, let say 15% of Basic Sal will that amt interest will be taxable or at max 12% of basic sal can be shown under tax exemption .


        1. Nikhil

          only 12% of basic is allowed for tax deduction . Not more than that 🙂


  81. vinod kumar says:

    i am vinod kumar ! physiotherapist. before i was working in udaipur were i had ppf account in sbi .now i relocated to bangalore ! so please can u tell me i can transfer my that ppf account to banglore ! and also i have not deposited any money in 2010 so will my account be be terminated !
    please help me regarding this !
    thank u!

    1. Vinod

      First , to transfer your PPF account, you will have to fill some forms and get its transferred to other place .

      Your account will not be terminated , but you have to pay the penalty of Rs 50


  82. prashanth says:

    Ha Manish, thanks for the prompt reply,after reading this article, i was under the impression that one can invest for only 15 times in life time and later should extend the account without further payments.

  83. prashanth says:

    Ha Manish, Can a person continue to invest Rs 70000 in his PPF account even after 15 years

    1. Prashanth

      Yes, you can extend your PPF account for block of 5 yrs after maturity and you can do it for any number of times

  84. Kirti says:

    Hello Manish ,

    Can you please guide on the Tax benefit on the amount which we keep in PPF account every year ?

    1. Kirti

      Its simple , you get tax benefit under sec 80C on the amount you invest every year . Also when you get the money at the end , you dont pay any tax on that .
      What else is the confusion ?


  85. Deepa says:

    Hi Manish

    Thanks for the info. I have a PPF and EPF both. I know not much about the investments and tax rebate. But this blog has been really useful to me.

    1. Can you please guide me if my employer and me are investing to EPF , do I still have to make investment of 1 lakh every year towards PPF, FDs and others. or the amount for investment will reduce, because certain portion is contributed by my employer towards EPF.
    2. Does the FDs done online for 5 years or more in a private bank gets tax rebate?

    1. Deepa

      1) Your contribution towards EPF comes under that limit of 80C , not your employers , so if you are paying 30k in EPF and also your employer ,. then you EPF will be covered , so you have to invest more 70k in other tax saving things.

      2) Yes, its not about 5 yrs , check with bank before hand that it qualifies for 80C


  86. imran khan says:

    its very good,
    how can i take my money back?
    and when?

    1. Imran

      You can take your money back after 5 yrs in EPF without paying the tax , but if you take it before that , you have to pay tax

  87. rajesh kumar says:


    Are PPF accounts are transferable from one location to other?

  88. V.Pathak says:


    I have one query when I’ll withdraw amount then it will be transfer in my saving a/c or I have to go bank for withdrawing.For getting amount in saving a/c is it necessary saving and PPF a/c should be have in same branch…Can i operate my PPF a/c in any branch of same bank in india.

    Can I check my balance online (net banking)

    Please provide your valuable opinion.

    1. Vikrant

      I dont think you can check you balance online from netbanking, your PPF account is an external account to which you can deposit money , but not do balance enquiry .

      Also , I am not sure how PPF money is given to the withdrawer ! , let me follow that at forum : https://www.jagoinvestor.com/forum/how-is-ppf-money-given-at-the-time-of-withdrawal/821/


      1. Manish Awasthi says:

        Hi Manish,

        My friend has a savings account in SBI . He also opened a PPF in SBI.
        He is able to see the balance of PPF through internet banking as SBI has linked his savings and PPF account

        Manish Awasthi

        1. Manish

          Really ? Thats great to know , thanks for the info , its a valuable thing 🙂


  89. Venkat says:


    I have question on service break and EPF relation. My EPF is with private PF trust. I am exiting my job and like to take break. Private PF trust tend to push us to withdraw PF upon exit, to avoid interest payment.

    I don’t like to withdraw it. How to hold in some EPF account?


    1. Venkat

      Thats a tough one for me , I am not sure on this one . EPF in other companies which are mentained by EPFO does not put any restriction on leaving it beside , but not sure if there is any compulsion on pvt PF’s , but why dont you now withdraw it , as keeping it idle will not fetch any interest anyways as per new guidelines 🙂


  90. VIshal Agrawal says:


    How the interest on EPF is calculated i.e. we contribute every month so how EPF trust decide to calculate and also, when EPF is paying 9.5 % interest for 2010-2011 means the amount accumulated till March 2010 right ?

    1. Vishal

      As far as I can find out . Interest is Calculated on a monthly basis using the Reducing Balance Method.

      The interest for PF is computed on a Reducing Balance method

      12% from the Employee
      12% from the Employer

      From the Employer’s Contribution, a part of the fund is contributed to Employee Pension Scheme (EPS)

      Calculation for EPS

      1. Rs.6500 * 8.33% (6500 is the maximum ceiling for PF) , this is equal to Rs.541
      2. If the Basic+DA is lesser than 6500 then the sum of the two * 8.33%

      Whichever is lesser, that amount is contributed to EPS and the Rest is taken to the EPF Account

      Source :

  91. PPF_EPF says:

    If I already have an EPF account with my employer, can I still open a PPF account? Are they both totally independent accounts?

    1. Yes they are not related 🙂


  92. Milind Khire says:

    Hi Manish,

    I have contributed to EPF while working with my 4 earlier companies.
    I have the EPF No’s but I am not sure whether all these EPF No’s are linked.
    Where to find this information?
    All these companies are in different states.


    1. Milind

      You will have to get details from your companies , try writing to EPFO office also , but I am not sure if it will help


  93. MONJIL says:

    Well i will do.

  94. Bijay Agarwal says:

    Hi Manish,

    I have been reading your articles and are all real informative. Thanks for such good information to you and also everyone providing the good quality of QAs in the comments. Few things i wanted help on..

    1. After reading your article on why open PPF account early I’m planning to open one. But before doing so I want to know whether is it possible for me to open a PPF account considering I already have an EPF account.

    2. Also I might quit job any time and go into higher education so for that case I think it would be better to have a PPF account opened now so that if i dont opt for job later it would be useful, correct me if I am wrong.

    3. I want to know is what happens to the EPF account if i quit before 5 years and then later I join job again after few years? can i keep the same account active?

    1. Bijay

      1. PPF and EPF are not related , you have PPF anyways
      2. PPF has a long lock in period , it would be better to put your money in some thing liquid where you can withdraw anytime , like mutual funds , try debt oriented mutual funds
      3. You can transfer the old account or open a new account and still have old account . You can withdraw from your PF account if you are jobless for 3 months


      1. Bijay Agarwal says:

        Thanks. What about interest? Will I get interest for the money when I withdraw it (say I quit at the end of 2 years and i withdraw it after 3 months of quiting job)

        1. Yes

          you will get it , EPF puts the interest accumulated every year 🙂


  95. Ajit says:

    In reply of the below question,
    “2. I read that employer’s contribution goes to pension scheme? Can you please provide details on this aspect or refer some links if it’s already provided by you?”
    You have said there is no such contribution from Employer…
    Just for your info, Employer’s 12% contribution has 2 component out of which approx 37.6% (confirm this from Google) goes to Employees pension scheme, 1995 and hence only 62.4% is accounted in the contribution towards provident fund.

    I would sincerely request you not to provide any wrong info as it may create problem for others.
    You have been doing a great job and its completely natural that you may not have answer for something. In that case, take the time and gather the info rather then giving wrong info.
    Hope you would take it positively.

    1. Ajit

      Thanks for the answer , I am not sure where did I gave wrong information , can you point me to that part in the article ?


  96. jkinvest says:

    Hi sir,

    8 years ago. I worked for couple of companies 1 year each. now the company is close but I contributed my PF in that companies. after that 5 years ago i joined a company and i paying PF. i am not sure weather my present employer has take the PF amount from previous company. is there a away for me to get access like our “bank statement” from PF office for last 8 years.


    1. You should try to contact EPFO office and let them know your PF account numbers for previous employers , I am not sure if they would be able to find it out just by your name, its your lazyness which can cost you some good amount of money in loss.


  97. Somnath Mukherjee says:

    I work in a Public Utility Company, which has its own Trustee based Provident Fund. It pays (currently) 9+% interest per annum of which the income corresponding to 8.5 % is tax free and the tax for the additional amount is deducted at applicable rate from the salary. I heard from somebody who works in a different company with a similar provident fund setup that after normal retirement the money accrued till retirement in the provident fund may be left in the with the trustees earning interest. However the interest is not accrued further and has to be withdrawn regularly.
    My question regarding this are as follows:
    1) Is this an universal rule or varies with each company trustee?
    2) Is the interest paid tax free up to 8.5 % ?
    If the answer to the above questions are ‘yes’, then I believe that this scheme surely beats the MIP and SCSS of Indian Post Office.

    Would really appreciate, if somebody clarify the same.
    Thanking you in anticipation.

    1. Somnath

      No idea on this . Anyone else ?


  98. Surabhi Rajan says:

    Hi Manish,

    I wish, I could have found your site much earlier. Started reading your articles for the last 2-3 months, but given a great insights to my personal finance. Thanks to Deepak Shenoy, for referring your article. I have started subscribing to JagoInvestor 🙂

    I remember, some of my friends recommended to open a PPF account few years back, and I did it Feb 2007. Invested 500 rs and forgot it. Do the PPF accounts gets locked/disabled, if it left inactive for few years? Will there be any charges to reopen my account? Thanks for your valuable time.


    1. Surabhi

      Great to have you on Jagoinvestor . Keep commenting.

      You have to pay Rs 50 per year to revive your PPF account, so for 3 yrs you pay Rs 150 as penalty .


      1. Dibya Ranjan Mohanty says:

        i think you have to pay Rs. (500+50)x3 i.e Rs. 1650 in total. 500 per year as minimum deposit and 50 per year as penalty. manish plz clarify in case m wrong here.

        1. Dibya

          Yup , you are correct .


  99. Hitesh says:


    Thanls for all the knowledge on PF account. I want start an account.
    1. Should i deposit the amount once in a year or monthly (like sip), in other words will i get the interest monthly / quaterly / annually ?
    2.Based on above when should invest during the year, in march or some other month to maximise more ?


    1. 1) Depends on your comfort , you will get monthly interest calculated .
      2) Doesnt matter much , march is good little bit


  100. Manohar says:

    Dear Sir/Madam,
    I have a PPF account in SBI, can I deposit a cheque in favour of my PPF account, if yes please give me the details.

    Thanks & regards,

    Manohar T.K.

    1. Manohar

      I am not sure on it , but it should be possible , check internet


      1. Somnath Mukherjee says:

        Yes. But you have to go to the bank again after the cheque is en-cashed to receive your proper receipt.

    2. Open PPF account from their acoount from moneis in indian Bank? or how they become able to invest

      1. Jitender

        You comment is not clear , please re-ask in easy language


  101. Hiral says:

    Does anybody have idea about FPF (af p af) ?

  102. GIGY says:

    Dear Manish,

    which is the best LIC policy for children
    child age is 13 yrs
    single premium will be paid in (say 2.0 lac)


    1. GiGy

      I dont think anyone , Child Education is a long term goal and hence by the law of personal finance , you should be investing in equity , however any endowment policy either LIC or any other company has pure debt plan , over the years the returns they provide is pathetic and hence are of no much use , They violate the basic idea of “long term investing should be done in Equity”


  103. Hiral says:

    Can you please let me know what is FPF ?
    It would be help if you can elaborate more on FPF.

    Thank you in advance.

  104. Shiv says:


    Thanks a lot for posting this article………!
    I have one doubt here, while opening the PPF a/c interest rate is 8% and in between government reduced the interest rate. In that scenario it would be applicable for only newbie or old PPF holders also.

    1. Shiv

      It will be applicable to every one . However the rates will be applicable to only that year .


    2. Rahul Sadawarte says:

      One more thing you need to keep in mind while investing in PPF /EPF that is variation of interest rate provided by Govt of India. Every april GOI will decide about the rate they will offer for that financial year in for both the instrument. It’s not fixed.

  105. Pankaj Nirale says:

    Dear Manish,
    First of all Thanks for such a nice help you have offered to lot of people so far.
    My query is as below:
    I am leaving my current company after completing five and half years. Principal Balance in my EPF account should be close to 3.25 Laks(without intrest) and I will get a gratuity amount of 1.25 Lakhs. I am starting my own business and want to keep complete EPF balance and gratuity amount strictly for my reitrement. So what are possible options for me?
    1. Can I withdraw complete balance+intrest from my EPF account?
    2. I read that employers contribution goes to pension scheme? Can you pls provide details on this aspect or refer some links if its already provided by you?
    3. It seems like PPF account has got a yearly limit of 70K, so where can I put amount close to 4.5Lakhs for retirement purpose? Is PPF still an option for me?
    4. Or can I continue my EPF account without any monthly contribution to it? Would the account still remian active?
    5. Can I put my gratuity amount into my EPF account as a one time credit?

    Please let me know your comments.

    Best Regards,

    1. Pankaj

      1) Yes
      2) There is no distinction on where employee and employer contribution will go differently .
      3) If you are talking about 4.5 lacs per year , then NPS can be an option , better invest in Balanced funds
      4) I dont think so , EPF is mainly for people who are employed somewhere , you need to get “Salary” for that.
      5) No , thats not how it works .


      1. Ajay says:

        On query 2., Out of 12% of the employer’s share of contribution, 8.33% is to be remitted towards pension fund, but I think there is a upper limit to it.
        Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.

        1. Ajay

          Thanks for the info 🙂


  106. Shibu John says:

    I have a query. My company does give me PF facility. But the management says that to start your own. So how can i convince them that EPF is better than PPF. Kindly let me know the benefit of EPF over PPF


    1. Shibu

      – the benefits are 0.5% extra
      – early withdrawal than PPF allowed
      – Same contribution from employer


  107. Manish says:


    Lets say If i want to plan my retirement using PPF . I want to open a PPF account lets say for next 35 years (30K will be invested every year) . Will the interset will be calcaulated compunded anluaaly even after 15 years ? Do I need to take my money out after 15 years and need to open a new PPF after 15 years ?

    1. Manish

      Interest will be calculated in the same way . Its calculated every month on the 5th . After maturity of 15 yrs, you have to renew it for a block of 5 yrs every time , So after 15 yrs, you again run it for 5 yrs, then at 20 yrs , you again have to renew it for another 5 yrs . Like that . does that answer ?


      1. Sagar says:

        Dear Manish,

        Can 1 PPF account be continued even after 20 Yrs (15 Yrs Running+5 Yrs Locking)? It seems from ur answers that I can continue even after 20 Yrs with 5 Yrs Lockin…. Thanks in advance for ur reply

        1. Sagar

          yes ,you can continue PPF for any number of years in block of 5yrs


  108. Sandie says:

    Hi Manish,
    As per new DTC (EET), will PPF be gud deal to invest as after all if not today den tomorrow(after 15 years) it going to b taxable ??
    I have opened PPF account in last year by keeping this in mind that after 15 year all money will be tax freebut i hesitate to continue add money in ac bcoz of DTC . Pls suggest.

    1. Sandie

      Even if DTC comes , PPF will still be good bet in Debt , as everything will be taxable at maturity , your current decisions should not matter much because after 15 yrs tax will be there, if you dont choose PPF , then what will you choose , is there anything in Debt product which will not be taxable ? i guess no 🙂


  109. Guruprasad says:

    Hi Manish ,

    Thank you for educating us in making financial decision .

    I have recently subscribed to ur site and since I joined I am improving my financial Quotient .

    Manish , I would like to know how is investing in PPF is different from investing in FD ?
    As I understand , both give us the assured interest over a period of time , interest gets compounded and both are for accumulating money considering long term .

    Please advice .

    Thanks in advance
    Guruprasad SP

    1. Guruprasad

      PPF interest is not taxble , FD interest is
      PPF is a long term creation tool hence not liquid .. FD as more liquid , you can break it when you want ..
      PPF has limits , FD has not ..


  110. Shantharam says:

    Hi Manish,

    How are you ? Long time since we discussed on this blog.
    I have come up with a small issue in my company regarding PF.

    They have provided me the option to contribute additional PF (VPF) to the max extent of 88% as 12% is already being deducted.

    However, they say that i will not be able to withdraw the VPF as per my wish. i will only be able to withdraw the normal PF amount accumulated.

    is it the case everywhere ?


    1. Shantharam

      I have no idea about this 🙁

      Anyone else >?


      1. Udaya Bhaskar says:

        Hi Shantaram,

        I am not sure you would have got your answer by now since this post is almost 3 years old, but I am replying anyway for others’ benefit.

        Since you are contributing 12% of your basic salary as a mandatory thing, u can put in 88% more. And then there is the 3.67% chunk of the employer’s 12%. (The remaining 8.33% chunk goes into your EPS account)

        All this money goes into the same EPF account that you have in this company. So the general rules of EPF apply. Withdrawal is possible only at the time of leaving the company or when you retire.

        Moreover if your EPF account is less than 5 years old (in the same company or spanning multiple companies) at the time of withdrawal, the money will be taxed too. For example, let’s assume you worked in company A for 2 years, company B for 2.5 years and company C for 1 year. If you have transferred your PF account each time you switched companies, your PF account is considered to be a total of 5.5 years old (2+2.5+1). So now if you switch to a new company and this time withdraw instead of transferring it, since it’s more than 5 years old, the withdrawal amount is tax free. If you had withdrawn when moving from company B to C, the account is only 4.5 years old (2+2.5), so it would have been taxed.


        1. Vijay says:

          Hi Udaya!

          I am having some doubts regarding EPS withdrawal, they are as below:

          1. My total experience is 4 yrs n 7 months, if i change compay, is it possible to withdraw only EPS? (i dont want to with draw EPF).
          2. How much amount will i get, as the rules have been changed for EPS and upper limit has been increased from 6500 to 15000.
          3. Does the EPS with drawal amount is taxable?
          4. What is the form for EPS with drawal.

          1. 1. I guess its not possible

            2. That only EPFO can tell you

            3. Yes, if its before 5 yrs working

            4. You can get it on EPFO website


            1. Vijay says:

              thanks for the reply.
              For query no.1 – It seems you are not sure, how to confirm this and with whom I need to contact?

            2. Best thing would be to ask EPFO on this via RTI !

  111. Bijoy says:

    How many PPF accounts can be opened by an individual? If more than one accounts are allowed, then can I deposit Rs70000 in each of the accounts per year or the total deposit should be limited to Rs70000 for all the accounts per year.

    1. Bijoy

      A person can open an account for himself and minor child , however total investments in all the PPF account can not cross 70,000


  112. saurabh says:

    hi Manish,
    1st deposit 20000 in 5th march 2008
    2nd deposit 2500 in 3rd March 2010
    I want to know
    1) before which date every month one should deposit money in ppf account , so that it qualifies for interest?
    2) if some1 wants to deposit lump sum in March 2010 instead of putting in money every month how much difference in interest(if any ) will it make?
    3) can you point to some link which shows how interest is compounded /calculated in a ppf account

  113. shiv says:

    Hi, Very helpful incite on PFF and EPF. I have a query – if both the spouse are working, can they have two ppf acounts and hence contribute 70k each towards PPF ?
    OR is 70k max for both accounts?

    1. Shiv

      Wheather working or not . Does not matter . each one can open PPF account and do 70k in each .


  114. Srikanth Achanta says:

    I find NSC more flexible, you have an option to use your money starting from the 6th year. Assuming that we take NSC every year for a fixed amount.

    With PPF we cannot think about it for 15 yrs.

    I have one question though, say i open PPF account today and after 14yrs put 70,000 in it and will i get tax benefit for that amount and would it mature in one year?

    1. Srikanth

      Yes , PPF will mature in 15 yrs with whatever amount put have put before, I dont find NSC better because of the low returns (interest is taxable , PPF interest is not)


  115. Anil says:

    Dear Manish,

    Along with EPF, contributions can also be made to VPF ( Voluntary Provident Fund) , which can add to the retirement fund. Return on investment is same as EPF ( Currently 8.5%), thus giving an edge over PPF.

    I am not aware of the rules related to withdrawal of money from VPF. Can you please explain the same?

    1. Anil

      Ya you are correct .

      Regaring EPF , its again just like a providend fund . but we have different rules for it . I will discuss about the withdrawal rules in full post . Infact i have done that already in one post . look archives .


  116. Abhimanyu Dagla says:

    Hi Manish,
    I want to start my ppf account and deposit for year 2010-11. When should I do that to earn max interest ? I thought first week of april, before 5th.
    thanks. kudos to you for such an excellent blog.

    1. Abhimanyu

      You can open PPF account any time and start depositing any time , interest is calculated monthly for the minimum amount on 5th of everymonth , But the whole interest is deposited at the end in the account . Apr 5th is just a myth 🙂


  117. Monjit says:


    I think the answer has already been provided by Manish in the previous update , which is..
    “No you can not .. you will get interest for the period your money was in the PPF account thats all .”

  118. Sohan Sharma says:

    Manish ji , Please give me answer of my one question if I open a PPF a/c with Rs. 10000/- in Febuary 2010 can i get full interest of the financial year 2009-10 on rs. 100000/-

  119. Sohan Sharma says:

    Manish ji , Please give me answer of my one question if I open a PPF a/c with Rs. 10000/- in Febuary 2010 can i get full interest of the financial year 2009-10 on rs. 100000/-

    1. manish says:


      No you can not .. you will get interest for the period your money was in the PPF account thats all .


  120. sherley says:

    IMy first deposit is in March 2008. This amount will be considered as deposit for the financial year of 2007-2008. Am i right.
    My second deposit is in Jan 2010. So this will be considered as 2009 -2010 financial year deposit. is it right.
    So can i deposit in PPF from April 2010 every month. so it will be considered as deposit for next the financial year April 2010 – Mar 2011
    Since i am not clear about the deposit durations. Since deposit in PPF is considered for Tax exemption. is it considered as financial year or calender year.

    1. Always a financial year is considered , So your payment between Apr 2009 – Mar 2010 , will be for year 2009-2010 .


  121. Mahesh says:


    what is the frequency of interest calculation by post office / bank for the individuals saving amount lying in PPF a/c ?

    For example, I opened PPF a/c in Jan 2009 with an intial deposit of 10,000 INR and deposited again 10,000 INR each time in Apr 2009 and Sep 2009.

    Is the interest calculation will be done for entire 30,000 one time for year 2009. How it works?

    1. manish says:


      Interest is calculated just one time in a year on the lowest balance between the fifth and the last day of the month of March. So make all your deposits before March 5.

      regarding your question , I am not sure how will it be calculated . But i think the interest should be calculated on prorata basis for the first year .


      1. Mahesh says:

        Thanks a lot Manish

  122. Shantharam says:


    Will EPF not outscore PPF in terms of returns and investment ?

    EPF gives 8.5% p.a whereas PPF gives 8%.. Also, in EPF your employer contributes half of the amount. whereas there is no such contribution in PPF.

    Of course EPF cannot be opened by unemployed … whereas PPF is open to everyone…

    Your views…


    1. manish says:


      yes , EPF outscore PPF when it comes to returns . Also because employer also contributes same amount as you do (max 12% of basic salary) .

      So a person should always try to put PF upto 12% of basic and if possible more than that . PPF is some thing extra we should look after if we can take advantage of EPF .


  123. Raja says:

    Hi Manish,

    I contributed some amount to EPF account 15 years back. I never note that account number. Can I trace that number on Web. Still that account active?. Which site would help to check my account?.

    Secondly, Is that EPF different from PPF account. I like to invest some amount in PPF as your advised (pl. suggest how much % PPF in inv. allocation and years). I have account with ICICI bank. Is it passable to open with them PPF account?. pl. help.

    Thanks & Regards,

    1. manish says:


      you should enquire about your EPF with your company for which you work . EPF is at company , so incase you are working at present , get details from your company , if you left your old company you should have transferred the EPF from first company to second . If you have not done that yet , try contacting your first company .

      The conclusion here is that you should enquire in your company about your EPF . You can open PPF account anytime . go with SBI or some post office . The allcation would depend on your risk appetite and your own needs . I would say put more and more if you are not risk taker and can put money for long term .


      1. Hetal says:

        I have the same case but my old company has locked out. I don’t know where to contact. Can you please guide?

  124. Manish Chauhan says:


    No , PPF is one of the oldest things we have and its still managed and sold in traditional way . You have to visit your nearest Post office or Some Nationalised Bank , may be SBI to open your PPF.

    After 15 yrs, you can withdraw your 100% money .


    1. Sudir Shenoy says:

      Hi Manish, My company has less than 20 employees and hence company gives 10% basic+DA as PPF contribution. It is given to us as a cheque after the end of the financial year and company insist us to deposit into our account. However, as mentioned the amount is paid to us after the current financial year in April or May though it was a part of the current FY contribution. Is this correct to make the payment in next FY. Please assist. Thanks. Sudir

      1. Sudir

        That should not be the case , they should pay the contribution in the same year .. May be we need tax expert here ..

        Rishabh , can you help ?


  125. Shrikant Chamoli says:

    Hi Manish…great collection of information you have..just one more thing i want to ask. Is there any way to open the a/c online ? and last thing, after maturity 15 years can one withdraw the entire amount or has to stick to 60% only ?

  126. Manish Chauhan says:

    @has patel

    NRI can open the PPF account just like every other indian citizen ?

    Not sure of the procedure , but you might have to give some document proofs , thats it .. For rest details ask GOD .. aka google .


  127. has patel says:

    can i get answer?

  128. has patel says:


    Can NRI open PPF account from their acoount from moneis in indian Bank? or how they become able to invest?

  129. Anonymous says:

    Hi manish – thanq u very much for posting such useful information on investing…I have read couple of articles in your blog / website.those are very good in explaining basics.. I have a question regarding ppf.. Can nris open an ppf account..if yes, what is the procedure?

  130. Manish Chauhan says:


    Yes you can , the max limit is just 70k and min is 500 per year ..


  131. Anonymous says:

    Hi Manish,
    Your article is very useful. I have a question on PPF acc.
    Can I deposite every yr different amt in my PPF acc?
    If I start PPF acc by depositing 5000 so can I deposite 500 next yrs and 10000 next to next yr?

    1. Sagar says:

      Yes You Can.

      1. SOMNATH TAKWALE says:

        before this artical reading i have confution between EPS and PPF. i having already EPS A/C. i have been thinking PPF A/C. now full information and prosedure are knowing after artical read.
        most useful informative artical.
        somnath takwale

    2. ashish pandey says:

      You can deposit max of 100000 Rs in a fiscal year as per new guidelines from RBI.

      1. Vineet Bulbule says:

        Those are not the guidelines from RBI. Its from the Finance Ministry. RBI has nothing to do with this new announcement.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FREE Financial Health Checkup

Take up a detailed 25 questions financial health checkup to find out how much you score out of 100?