Dont withdrawal PF Amount Full details
In this post we will see in detail about whether it is right or wrong to withdraw all the money in your PF account after completing humility in a company.
Many people take all the money in their PF account after completing a job in a company. Some of them take the money and deposit it in their bank account. Both of these are misconceptions. If you are a PF customers than avoiding this mistake will give you a good benefit.
PF is the amount allocated from our monthly salary. Including 12% of our monthly salary and 12% of the company we work for, a total of 24% is deposited in the PF account.
Why not withdraw PF account
- Our PF account is more secure than our bank account.
- PF account can give high income.
- No one else can withdraw money from PF account.
- Cannot transfer money from PF account to someone else’s account.
- Our PF account offers 8.5% interest. PF pays interest that no bank can pay.
Reason for withdrawal of PF amount
- They take the money in the PF amount immediately after leaving the job because they think that the money will not be taken or the money will be wasted.
- They take the money and deposit it in a bank account or fixed deposit thinking that there is no interest in the PF account.
- The money in the PF account is immediately taken away to be used for medical expenses, house building and other expenses.
- They withdraw PF money immediately for fear that they will not get the company’s support if they do not withdraw the money immediately or if they close the company they will not be able to withdraw the money.
The benefits of taking of money late
- Currently the PF account offers an interest rate of 8.5% for the fiscal year 2020-2021. It is noteworthy that before this the interest rate was offered up to 9.5%.
- The PF account is the most secure storage plan.
- You can earn high interest income if you do not withdraw money from your PF account.
- If your PF contribution is 9.5 years and more you will get pension.
- If you have Rs.1 lakh in your PF account you will get Rs.8,500 interest per year.
- Interest will still be paid on the money in your PF account even after you retire. This rule did not exist before.
- Insurance is available for PF account holders. Rs.2 lakh to 7 lakh is paid to the deceased while on duty.
- Your account will not be disabled if you do not withdraw your PF money. But if there is no transaction for 3years than your PF account will be disabled.
- If you do not take the PF money will help with your medical expenses in adulthood and the marriage and education of the children.
- If your PF account has both employee share and employer share over Rs.50,000 then you will get interest when you withdraw money after 5 years. There is no tax favorite. But there is a tax deduction if taken before 5 years.
Use the money in the PF account after a certain period of time without Withdrawing it immediately