If you're looking to invest in a scheme that offers safe and better returns, the Employees' Provident Fund (EPF) and Recurring Deposit (RD) could be a good option. Learn about their interest rates.

EPF vs RD deposit 2025: Indian investors are often eager to learn about schemes that offer good returns. They are both open to saving and investing, and they invest in new schemes based on their convenience and needs.

If you're looking to invest in a scheme that offers safe and better returns, the Employees' Provident Fund (EPF) and Recurring Deposit (RD) could be a good option. However, both schemes have similarities and differences.

Employees' Provident Fund

The Employees' Provident Fund serves as a good retirement plan for employed individuals. Under this scheme, both the employee and the employer contribute 12 percent each. The government then pays interest on this amount every year. This interest rate is approximately 8.25 percent in the current year.

Tax exemptions are also provided on the entire maturity amount deposited by the employee. Due to its long-term investment horizon, EPF often offers better returns than RDs. However, you cannot withdraw funds from EPF at will. You can withdraw funds only for certain circumstances, such as marriage, serious illness, and children's education.

Recurring Deposit

Recurring deposits are ideal for those who save small amounts and want to earn good returns on their savings. You can easily open an RD account at a bank or post office. You can invest in it for 6 months to 10 years.

You can also extend this period if you wish. The interest rate on RDs ranges from 6 to 7.5 percent. The interest earned on this investment is taxable. Furthermore, bank interest rates are subject to change.

Overall, if you are prepared to invest for the long term, the Employees' Provident Fund (EPF) and RDs may be a good option for you for the short term. However, consult your financial advisor before making any investment. Choose investment options based on your needs.