PPF vs VPF: Know return values of Rs 1.50 lakh/year investments

ZeeBiz WebTeam

Jul 24,2024

What is VPF?

It's a voluntary contribution beyond the 12 per cent limit of EPF. 

VPF interest rate 

VPF interest rate is 8.25% anually.

What is PPF?

It is a guaranteed return, small savings scheme used by many investors to generate the retirement corpus. 

PPF interest rate

The scheme provides 7.1 per cent compound interest rate. 

Rs 1.50 lakh/y investment in VPF

At the rate of 8.25 per cent interest rate, the invested amount will be Rs 22,50,000, interest will be Rs 22,45,556 and the maturity amount will be Rs 44,95,556.

Rs 1.50 lakh/y investment in PPF

In PPF, the total contribution in the 15-year period will be Rs 22,50,000, the interest amount will be Rs 18,18,209, and the maturity amount will be Rs 40,68,209.

PPF vs VPF: Know return values of Rs 1.50 lakh/year investments