EPF Account: Know how you get these 5 amazing benefits for free on your EPF account..

Whenever a working person is asked about Provident Fund (PF), most of them have the same answer - "It is my savings for retirement." This is true, but it is half the truth. Your PF account is not just a piggy bank in which you save money for old age. It is actually a 'power-packed' tool of your social security, which gives you many tremendous benefits apart from the retirement fund, which you may not even know about.

This small part deducted from your salary gives you many facilities, from free insurance to a pension. Let us know today about those 5 big benefits available on the PF account, which every employee should know.

1. Guarantee of lifelong pension after retirement (EPS)

A small part of your PF contribution goes to the Employee Pension Scheme (EPS). If you have completed a total of 10 years in any organized sector job, then you become entitled to get a lifetime pension after retirement at the age of 58 years. This ensures a fixed monthly income for your old age, so that you do not have to depend on anyone. After you, your spouse also gets a part of this pension.

2. Free life insurance of ₹ 7 lakh (EDLI Scheme)
This is the most powerful benefit of PF, but very few people know about it. Every EPF member is automatically covered under the Employee Deposit-Linked Insurance (EDLI) scheme. Under this, if an employee dies during the job, then his nominee gets a lump sum payment of ₹ 2.5 lakh to a maximum of ₹ 7 lakh. The special thing is that not a single rupee is deducted from your salary for this insurance cover. Its premium is paid by your company. This is a huge financial security cover for your family.

3. Cheap and easy loan on need (PF Advance)

Many times in life we ​​suddenly need money, like marriage, children, higher education, building a house, or a medical emergency. In such situations, you do not need to take an expensive personal loan. You can withdraw money from your own PF account in the form of 'Advance' (PF Advance). This is a kind of loan, but you do not have to repay it and there is no interest on it, because it is your own money. You can apply for it online in a few easy steps by visiting the EPFO ​​​​portal and the money comes to your bank account in a few days.

4. 'Brahmastra' of saving tax (EEE Status)
PF is one of the best means of saving tax in India. It has the status of EEE (Exempt-Exempt-Exempt). This means:

Exempt: The money you invest in PF (your 12% share) is tax-exempt under section 80C.

Exempt: The annual interest you get on the money deposited in your PF account (currently 8.25%) is also completely tax-free.

Exempt: When you withdraw your PF money after 5 years of continuous employment, there is no tax on that entire amount.

5. Better interest rate than FD

EPF gets government-determined interest rates, which are usually higher than FD. In such a situation, you can accumulate a good retirement fund through EPF. Currently, it is getting 8.25% interest.

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