5 benefits of Provident Fund account holders

 Top 5 benefits of  Provident fund account holders, you have to know for sure

At present, 12 percent of the 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. The Employee Provident Fund (EPF) 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 interested on your PF account. But, besides interest, there are many advantages of a PF account. At present, 12 percent of the 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 of Provident Fund account holders

5 benefits of Provident Fund account holders

1. One benefits of Provident Fund Account holders are Insured up to Rs 6 lakhs 

You probably will not know that the default insurance is available 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. Second benefits of Provident Fund Account holders are Pension after retirement

In the case of a regular PF account for 10 years, you get the benefit of the Employee Pension Scheme on your account. If an account holder continues to work 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. Third benefits of Provident Fund Account holders interest on passive accounts also

The EPFO had also decided to pay interest on accounts which were deferred last year. However, it did not happen earlier. Now there will be interest on 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 interested. The experts say that the transfer of your PF account should be taken as soon as the job changes. This will get interested in your regular amount. If you do not do this then according to the rules, in the case of withdrawal of account for more than five years, it will be taxed at withdrawal (withdrawal).

4. Fourth Benefits of Provident Fund Account holders PF account will transfer automatically

It is now easier to transfer Money to PF on the job change. By linking to your UAN (Unique Number) number, you can keep one or more of your PF accounts (in case of a job change) in one place. No need to fill up Form-13 to claim the EPF's money when you book 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. Fifth Benefits of Provident Fund Account holders Money can be withdrawn in some situations

Often people 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, for the marriage of a girl. However, in order to avail these benefits, the account holders must be members of the EPFO for a certain period of time.