EPFO: In today’s time, every working person searches for a way to invest for his secure future, where returns are guaranteed and money also grows rapidly. When it comes to safe investment, bank fixed deposit (FD) comes to mind first. But in recent times, the scope of returns on fixed income instruments has become quite limited. In such a situation, Employees’ Provident Fund Organization (EPFO) has emerged as a big savior for the working class. An excellent interest of 8.25 percent is being given on EPF for the first quarter of the financial year 2026-27. This rate not only assures safe investment, but through the magic of compounding can also make you the owner of a huge tax-free fund of Rs 2.24 crore.
PF becomes the safest place compared to fixed deposits
Despite all the new investment options available in the market, EPF is still the strongest option in the category of secured returns. The interest rates on bank FDs or other traditional schemes often seem to struggle to beat the inflation rate. At the same time, the current interest of 8.25 percent available on EPF is quite attractive compared to other safe investment options. The money deposited here is not only protected from market fluctuations, but the compounding (compound interest) received on it turns small savings into a big fund in the long run.
Huge corpus will be prepared after 30 years long innings
The biggest rule of wealth creation is consistency in investment. If any person deposits an amount of Rs 15,000 every month in his PF account, then the picture of the future can change completely. With an annual interest of 8.25 percent for 30 consecutive years, this amount translates into a huge corpus of Rs 2.24 crore. The biggest feature of this investment is that the entire amount received on maturity is tax-free. This simply means that at the time of retirement, you will not have to pay any income tax on your hard-earned money throughout your life.
Increase the pace of your savings through VPF
Now the question arises that if Rs 15,000 is not being deducted from the salary of an employee towards PF, then how should he achieve this target. In this situation, Voluntary Provident Fund (VPF) comes in handy. VPF gives the facility to the employees to deposit money in their EPF account as per their wish even above the mandatory contribution of 12 percent. According to the rules, any employee can invest up to 100 percent of his basic salary and dearness allowance (DA) in VPF. The interest on this additional deposit amount is exactly equal to that of EPF.
Keep these conditions in mind before starting investment
Accelerating your savings through VPF is a great financial move, but it is important to understand some of its technical aspects. No additional contribution is made by the company (employer) into the VPF account; This is completely the employee’s own money. Moreover, once you start your contribution in VPF, it is not easy to pause or stop it. To maintain financial discipline, there is a rule that after the start of VPF contribution, it has to be continued for at least 5 years.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
