Employees Provident Fund (EPF)

The EPF program is a fund, providing money upon retirement, resignation or death, based on the accumulated contributions plus interest.

In this scheme both the employer and the employee contribute 12% of annual income towards the fund. Of this 24% contribution, 8.33% is given towards a family pension plan. The remaining portion (15.67%) grows at a rate of 9.5% per annum. This return is guaranteed. Also, investments up to a maximum of Rs 70,000 per annum are not taxed!

Withdrawals from EPF is allowed under certain special circumstances like buying a house, children's wedding, etc. If you quit your job and provide a declaration that you do not intend to work for the next six months you can withdraw your EPF.

How to invest in EPF?

This is generally done though your company if you are an employee.  You need to find out from your company! 

Next - National Savings Certificate (NSC) >>

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Table Of Contents

  1. How to manage your money? - Intro
  2. Why should you invest your money?
  3.       >> For making "big buys"!
  4.       >> For tax saving!
  5.       >> Inflation
  6.       >> "The power of compounding!"
  7. How to invest?
  8. Investing in Mutual Funds!
  9. Assured return investments...
  10.       >> Fixed Deposits (FD's)
  11.       >> Public Provident Fund (PPF)
  12.       >> Employees Provident Fund (EPF)
  13.       >> National Savings Certificate (NSC)
  14.       >> Kisan Vikas Patra
  15.       >> Post-office - Monthly Income Scheme 
  16.       >> Post-office - Time Deposits
  17. Insurance