PF Tips: Interest is earned on PF even after retirement, know these rules of EPFO otherwise you may suffer loss..
If you're retiring and have an EPF account, here's an important thing to know. According to the Employees' Provident Fund Organization (EPFO) rules, your PF account will only earn interest for three years after retirement. That is, if you retired at 58, your PF account will earn interest until you reach 61. After that, your PF account will be rendered inoperative, and interest payments will stop.
PF Account Will Become Inactive
Some people think that if a PF account becomes inactive, their money will be lost, but this is not the case. Your money remains completely safe; only interest payments stop. This means that if you don't withdraw your PF funds after three years of retirement, your deposits will remain, but you won't earn interest. Therefore, it's important to withdraw your PF funds within three years of retirement and invest them elsewhere so you can continue to receive interest.
Even after leaving your job, you will receive interest for three years.
Just like retirement, if you leave your job, your PF deposits will continue to earn interest for three years. This means that the government will pay interest on the PF deposits deposited by your last employer for three years. After this, your PF account will become inactive, and interest payments will stop. For the financial year 2024-25, the EPFO has fixed an interest rate of 8.25%, which varies from time to time. Therefore, it is important to know that even after leaving your job, interest continues to accrue on PF deposits for some time.
PF Withdrawals Now Easier
EPFO has simplified PF withdrawal rules to reduce hassles for employees. If your UAN is active and KYC is complete, you can withdraw PF online from the comfort of your home. To do this, visit the EPFO website and log in with your UAN, then go to the Claim section under Online Services. There, you can withdraw PF by verifying your bank details and selecting the reason. After OTP verification, the money is credited directly to your bank account within 7-8 days.
If you wish to withdraw money offline, you must visit your nearest EPFO office and fill out Form 19, 10C, or 31. You must attach a copy of your identity card and bank passbook. You may also need to obtain a signature and stamp from the company. After this, you receive the money within 7 to 10 days.
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