Provident Fund (PF)
Key Features Of Provident Fund
Mandatory Savings
A fixed percentage of salary is contributed regularly.
Employer Contribution
Employers contribute an equal amount to the fund.
Government-Backed
Safe, reliable, and regulated under statutory laws.
Tax Benefits
Contributions are eligible for deductions under Section 80C of the Income Tax Act.
Steady Growth
Earns interest at a rate decided by the government.
Withdrawal Facility
Partial withdrawals allowed for specific needs like education, medical expenses, or housing.
Types of Provident Funds
Eligibility & Required Documents
EPF – Mandatory for salaried employees earning up to a set wage threshold.
PPF – Open to all resident individuals (NRIs not eligible).
GPF – Only for government employees.
- Identity proof (Aadhaar, PAN, Passport)
- Address proof (Utility bill, Aadhaar, Passport)
- Salary slips / employer details (for EPF)
How to Open a Provident Fund Account?
Employees’ Provident Fund (EPF)
Created automatically by your employer when you join; activate your UAN on the EPFO portal.
Public Provident Fund (PPF)
Open online or offline through a bank or post office with KYC documents and an initial deposit.
General Provident Fund (GPF)
Set up and managed directly by your government employer.
Voluntary Provident Fund (VPF)
Contribute extra to your EPF by informing your employer’s payroll/HR.
PF vs Other Savings Instruments
|
Investment Type |
Risk Level |
Return Potential |
Liquidity |
Ideal For |
|---|---|---|---|---|
|
Provident Fund (PF) |
Low |
Moderate |
Medium |
Retirement savings & tax benefits |
|
Fixed Deposits (FDs) |
Low |
Low–Moderate |
Medium |
Capital safety |
|
Mutual Funds |
Medium |
Moderate–High |
High |
Diversification & growth |
|
Equities |
High |
High |
High |
Long-term wealth growth |
|
Public Provident Fund (PPF) |
Low |
Moderate (tax-free) |
Low (15-year lock-in) |
Retirement planning & tax saving |
|
Gold Investment (Digital/Physical) |
Medium |
Moderate |
Medium–High |
Hedge against inflation & wealth preservation |
|
Real Estate |
Medium–High |
High |
Low |
Long-term capital appreciation |
|
Bonds/Debentures |
Low–Medium |
Moderate |
Medium |
Regular income with stability |
|
National Savings Certificate (NSC) |
Low |
Moderate (tax benefit) |
Low (5-year lock-in) |
Secure, tax-saving option |
|
Savings Account |
Very Low |
Very Low |
Very High |
Daily liquidity & emergency funds |
Advantages of Provident Fund Account with OnClock
At OnClock, our Provident Fund solutions combine the core benefits of PF schemes with seamless digital convenience and expert guidance:
Strong, Government-Backed Security
PF contributions are safe and delivered with assured returns backed by regulation and stability.Tax-Efficiency All Around
Enjoy triple tax benefits—on contributions, interest earned, and final withdrawal (subject to conditions), enhancing your long-term gains.Employee + Employer Contributions
Benefit from not just your own savings but also employer’s mandatory contributions, adding "free money" to your retirement corpus.Loans & Partial Withdrawals With Flexibility
Tap into funds during emergencies, home needs, education, or medical emergencies—partial withdrawals or loans are allowed under set conditions.Pension & Insurance Safety Net
You secure long-term benefits via the Employees’ Pension Scheme (EPS) and EDLI (Employee Deposit Linked Insurance), providing post-retirement pension and life insurance coverage.Portable & Easy to Manage (UAN Enabled)
Your PF moves with you—UAN ensures portability and consolidation of PF accounts across different employers, all manageable online.