If you contribute to a PF account, avoid withdrawing the entire amount when you change jobs. Instead, opt for PF account transfer. This will keep your fund growing continuously and you can save a large amount for the future.
For a working person, EPFO scheme is a support for living after retirement. The lump sum amount received from this scheme does not allow one to beg in front of anyone. An EPFO holder has to deposit 12% of his salary in the PF account every month. The company also deposits as much in the PF account as the employee..
Employees change jobs many times during their work. Many times their first step is to withdraw the money deposited in their PF account. As soon as they do this, their PF membership ends. In such a situation, the best option is to transfer their PF account after changing jobs.
Let us tell you that by transferring your account you can earn double benefit. Let us understand from the article how this benefit is obtained.
PF account transfer is a good option
After transferring the PF account, your membership remains. This gives you the benefit of compound interest, which makes you have a good amount. If you keep your PF account active for 10 years, then you can also get pension after retirement.
Transferring PF account will give a huge fund
Understand with an example that suppose your basic salary is up to Rs 15 thousand. Both you and the company together contribute an amount of about Rs 3600 to your PF account. You get 8.5 percent interest on this fund. This will become Rs 12 lakh 94 thousand in 15 years.