The interest rate has come down continuously in the last few years. Still, it is a good investment option for the employed. At present, the interest rate on PF is 8.50 percent. 12 percent PF is deducted from the salary of every account holder. But, apart from investing in PF, there are many other benefits.
EPFO Account Benefits: Employees’ Provident Fund Organization (EPFO) is considered a good source of savings for the future. The Central Board of Trustees fixes the interest rate for every year. The interest rate has come down continuously in the last few years. Still, it is a good investment option for the employed. At present, the interest rate on PF is 8.50 percent. 12 percent PF is deducted from the salary of every account holder. But, apart from investing in PF, there are many other benefits. Let’s know what?
Insurance up to 6 lakhs
By default, insurance is available on your PF account. Under the EDLI (Employee Deposit Linked Insurance) scheme, insurance up to Rs 6 lakh is available on the PF account. Under this scheme, the account holder gets a lumpsum payment. Its benefit can be taken at the time of any illness or accident and death.
Pension after retirement
In the event of deposits of regular pension in the PF account for 10 years, the benefit of the Employee Pension Scheme is available on the account. If an account holder remains in the job for 10 years and the amount continues to be deposited in his account, then under the Employee Pension Scheme 1995, he gets a minimum pension of one thousand rupees after retirement. However, now there is talk of increasing the pension fund.
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Interest will be paid on dormant accounts
The EPFO has decided to pay interest on dormant accounts only a few years back, earlier it was not so. Accounts in which no transactions have taken place for three years are put in the category of dormant accounts. Experts say that you should get your PF account transferred as soon as you change your job. Failure to do so will result in the account being inactive for more than five years and tax will have to be paid on it at the time of withdrawal.
Automatically transfer PF account
Transferring PF money on a change of job is now easier than before. Through your unique number linked with Aadhaar, you can have more than one PF account in one place. There will be no need to fill Form-13 to claim EPF money on joining a new job. EPFO has issued a new Form-11 last day. This will transfer your previous account to the new account.
Money will come into the account in an hour
You can withdraw money from your PF account in certain situations. It takes three to four days for this money to reach your account. But the government has started a new facility in view of the corona epidemic. Under this, money will come into the account within an hour of the application. This facility has been started under Medical Emergency. Apart from this, you can also withdraw PF money for buying a house, higher education of children, or marriage of a girl.
