Employee Provident Fund(EPF) is a government scheme that helps in building up a retirement corpus.It was introduce in 1952 under the Employees’ Provident Fund Organization(EPFO).

In this scheme,employees contribute 12% of their basic income to the fund every every month,and the employer matches this amount with an equal contributions.

Where does your money go when you invest in EPF?
The EPF is not a single scheme. Actually,it consists of three distinct schemes,each with a different goal.

1. The first part of the EPF scheme is where your retirement benefits are accumulated.This is basically the wealth generation part of the scheme.

2. The second part of the scheme is related to EPS. This scheme aims to provide a pension after the age of 58years. 

3. Third part of the scheme is related to EDLI(Employment Deposit Linked Insurance Scheme).Under this scheme,you are covered under a life insurance policy.

Interest Rate You Earn.
EPF deposit currently have an interest rate of 8.25% every year,the government reviews and declares the EPF rate of interest.

Useful to Save Tax.
EPF investment come under the tax company of Exempt,Exempt,Exempt(EEE).As contributions are deductible from your total income.There is no tax due on the amount you invest,the interest you earn,or the amount you receive on maturity.

EPF Withdrawal Rules.
There are three scenarios upon which 100% of the EPF can be withdrawn;
* Upon attaining the age of 58years.
* If you are unemployed for two months or more.
* Upon the premature death of the member.

Though,there are other scenarios too,in which you need funds such as Children education,buying or construction of the house,marriages etc.
In this case,you can withdraw some portion of the contribution from the EPF. However,there are quite a number of terms and conditions that you need to be mindful of.