Get 0.5% more... vs ppf

Section 80 c is a key way for all of us to save tax. With the limit being 1.5 lakhs it really is not that large as you get into middle age .

In this section there are many ways to save tax two of which is the employee provident fund ( epf) and the public provident fund ( ppf) .

Both the epf and the ppf are EEE status and give a pretty nice return . The ppf presently is giving 7.9% and the epf 8.65%.

The ppf is linked to the interest rates and changes every quarter, while the epf is set once a year by the epfo.

Usually we all put money in the ppf for ourselves and our family members.  But unfortunately the returns are lower than that of the epf.

Luckily there is an option for us to invest more in the epf using a facility called as the voluntary provident fund ( vpf). In this we as employees can add more to the epf without the additional contribution being reciprocated by the company.

This option is definately better than investing in the ppf.

Once i understood this.. i am planning to put only the min amount in my ppf ( Rs 500 per annum) and put the balance in epf through the vpf route.

Can anyone tell me what a 0.5% can do over a 30 year period for your funds?

It just makes sense... no .. it makes simplefinancialsense