The current interest offered on VPF contributions is 8.5%, which is much higher than that of the Public Provident Fund (PPF).

What is intrest rate on VPF?

Any employee who is working in India can invest in VPF. It earns interest at the rate of 8.5% per annum. Investors also get tax exemption under section 80C of income tax in this and the return on maturity is also tax-free.

Do we get interest on VPF?

The existing EPF account will serve as the additional VPF account. Currently, the interest is accrued at 8.5% per annum under this scheme. Contributions up to 1.5 lakhs PA and interest accrued is exempt from tax under Section 80C, resulting in higher returns in a long-term perspective.