Provident Fund (PF) Accounts: Eligibility, Interest Rates, Premature Withdrawal

Employees' Provident Fund (EPF) or PF account, Public Provident Fund (PPF) account and General Provident Fund (GPF) account are three major provident fund accounts available in the country. In these provident fund accounts, a subscriber invests a part of his/her salary for a certain period of time and avail amount on maturity. Interest rates on these schemes are revised according to notifications issued from time to time. While EPF and GPF are compulsory retirement saving options, Public Provident Fund (PPF) account is an investment avenue with income tax benefits.

Given below are key things to know about EPF, GPF and PPF accounts

Eligibility

Companies employing more than 20 people have to compulsorily make contributions towards the EPF. This means, both the employee and the employer make equal contributions towards the EPF kitty. On the other hand, General Provident Fund (GPF) is available only for government employees. While all resident Indians can open a PPF account.

Maturity

GPF account matures at the time of retirement. The Public Provident Fund account comes with a maturity period of 15 years.

Interest rates

Currently, all members of Employees' Provident Fund Organisation (EPFO) get an interest rate of 8.65 per cent on their Employees' Provident Fund (EPF) deposit. While GPF is offering 7.9 per cent interest for the quarter ending September 2019. The interest rate on PPF has been fixed at 7.9 per cent for the current quarter. 

Partial withdrawal

Partial withdrawal from EPF accounts is allowed for purchase/construction of house, repayment of loan, non-receipt of wage for two months, marriage of self/daughter/son/brother, for medical treatment of family members etc. GPF also allows partial withdrawal at certain conditions. Partial withdrawal is allowed in PPF account every year from the seventh financial year from the year of opening accoun