Why should you invest in PPF despite being an EPFO member? Steps to open PPF account online
PF is applicable for salaried employees where a fixed amount is deducted from salary and taken as a contribution towards PF. It continues until retirement or till whenever the employee is employed. Even though PF and PPF offer a similar structure, PPF is done with a choice known as voluntary contribution fund i.e. VCF.
If you already have a Provident fund account then there is no need to start a new investment account in PPF. However, one should open a PPF account and deposit a minimum sum of Rs. 500 to keep the account activated. This account can come handy if you are planning to leave employment or divert an extra fund of a family member to avail the tax-free ceiling of Rs. 1.5 lacs under section 80C of the income tax act.
Another advantage of opening an account of the public provident fund(PPF) immediately is that the lock-in period reduces over time. After a lock-in-period of 15 years, the renewals are done in blocks of 5 years each which affords you access to funds and liquidity. Hence, both self-employed and salary earning people shall consider PPF.
Source: Financial Express