You must also have a PF account, note that these are the 5 key points of your benefit
Employees Provident Fund Organization (EPFO) is considered to be a good source of savings. The Central Board of Trustees decides the interest rate for the current financial year every year. It is decided on the basis that you will get interest on your PF account. However, interest rates have declined steadily over the past few years, but still it is a good investment option for job seekers. Interest rates for the current financial year are to be decided by the end of this year. At present, the interest rate on PF is 8.55 percent. At present, 12 per cent pf is deducted from every account holder’s salary. But, it is also important to know what other benefits are in addition to PF investment.
These 5 benefits meet on PF account …
1. Insurance up to Rs. 6 lakhs
You probably will not have the information that you get a by-base insurance on your account. Under the EDLI (Employee Deposit Linked Insurance) scheme, your PF account gets up to Rs 6 lakh. Under this scheme, the account holder gets a lump sum payment. It can be taken advantage of any illness or accident and at the time of death.
2. In the event of the pension after retirement, for
10 years regular deposits in the regular PF account, you also get the benefit of Employee Pension Scheme on your account. If an account holder stays in a job for 10 consecutive years and a constant amount of money is deposited in his account, he will continue to receive one thousand rupees pension after his retirement under Employee Pension Scheme 1995.
3. Interest will also be found on idle accounts
EPFO has decided to pay interest on accounts which were deferred last year. However, it did not happen earlier. Now there will be interest on such PF accounts which have been inactive for more than 3 years. Indeed, in the accounts which have no transactions in 3 years, it is put in the category of the inactive account. Now these accounts will also get interest. The experts say that you should get your PF account transferred as soon as the job changes. This will get interest on your regular amount. If you do not do this then according to the rules, in the event of withdrawal of account for more than five years, it will be taxed at withdrawal (withdrawal).
4. Transferring PF Account will be transferred automatically
PF money transfer has become easier now. Through your UAN (Unique Number) number linked to the base, you can put more than one PF account (in case of job change) in one place. No need to fill up Form-13 to claim the EPF’s money when you join a new job. EPFO has recently released a new form-11, from which your previous account will be automatically transferred to the new account.
5. In some situations, money can be withdrawn.
People often withdraw money from PF accounts while changing jobs. That’s because people think that money can not be withdrawn from the current account. Not so, you can withdraw money from your PF account in some situations. However, during this time you can only withdraw a certain amount. For buying or making a house, for loan repayment of the house, in sickness, for higher education of children, girl’s marriage. However, to take advantage of these benefits, the account holders must be a member of the EPFO for a certain period of time.