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Tips to save: 'Invest in PPF or VPF'

By Dibyendu Kumar Roy
November 11, 2019 13:24 IST
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We asked you, dear readers to share your best tips on saving money.
Dibyendu Kumar Roy, 43, from New Delhi shares his tips.
Illustration: Uttam Ghosh/

For people who don't want to take a risk, Dibyendu Kumar Roy has two solutions:

  • Voluntary Provident Fund (VPF): If your office provides Voluntary Provident Fund, opt for it. Even if you save just ₹5,000 per month, in the next 10 years it will be a huge amount given the rate of interest you get. This contribution also lets you save tax under 80C. The average rate of interest for a Voluntary Provident Fund is usually above 8 per cent, and if continued for more than five years, no tax is applicable.
  • Public Provident Fund (PPF): Public Provident Fund usually has an average interest rate of more than 7.5 per cent. You can invest any amount between ₹1,000 to ₹1,50,000 per year. You can also save tax under section 80C. The great thing about PPF is that it has a lock-in period of 15 years, so the money invested cannot be taken back. However, you can take loan against your PPF account in between the third and fifth year. If a person save around ₹5,000 per month and deposits it in his PPF kitty, he will get around 16 to 17 lakh (approx) after 15 years.

We ask you, dear readers do you have any smart, effective and useful tips on saving money?

Have you applied these tips? Did it work? Share your tips and we'll publish the best ones on

Write in to with 'My tips to save money' in the subject line, along with your NAME, AGE and the place where you LIVE. Don't forget to send us your photograph.


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Dibyendu Kumar Roy