EPF vs RD deposit 2025: Indian investors are often eager for information about schemes giving good returns. Indian investors are ready to save as well as invest. Also, they invest in new schemes as per their convenience and needs.
If you also want to invest in a scheme that gives safe and better returns, then Employees Provident Fund (EPF) and Recurring Deposit (RD) can be a good option for you. However, both the schemes have similarities as well as some differences.
Employees Provident Fund
Employees Provident Fund works as a better retirement plan for employed people. Under this scheme, 12-12 percent contribution is made by both the employee and the employer. After this, the government pays interest on this amount every year. In the current year this interest is around 8.25 percent.
Tax exemption is also given on the entire maturity amount deposited by the employee. Due to long term investment, EPF sometimes gives better returns than RD. However, you cannot withdraw from EPF as per your wish. You can withdraw money from EPF only for some special circumstances like marriage, serious illness and children’s education.
Recurring Deposit
Recurring deposits are better for people who save money in small amounts and want to get good returns on this savings. You can easily open an RD account in a bank or post office. You can invest in it from 6 months to 10 weeks.
If you want, you can also extend this period. The interest rate in RD ranges between 6 to 7.5 percent. The interest received from this investment is taxed. Also, there may be a change in the interest rates of banks.
Overall, if you are ready to invest for the long term, then Employee Provident Fund and RD can be a good option for you for the short term. However, before making any kind of investment, please consult your financial advisor. Select investment options according to your needs.
Also read: Government employees become better off, managing retirement fund now easier
Khanderao Deshmukh aims to guide job seekers by delivering accurate, timely, and easy-to-understand information, helping them secure stable government careers.
