PF Fund Transfer Scheme If you contribute to a PF account, then this news is for you. You should never withdraw the entire amount from your PF account after changing jobs. You can select the option to transfer your PF account. You can deposit a large amount by transferring your PF account.
Through the EPFO scheme, employed people can easily avail pension along with a lump sum amount after retirement. EPFO holders deposit 12 percent of their basic salary every month in their PF account. The company also contributes as much as the employee.
Many times employees change jobs and at this time they withdraw the entire amount from their PF account. According to the EPFO, doing so can terminate the employee’s PF membership. For this reason, EPFO holders are advised to transfer their PF account when changing jobs.
The employee gets double benefit by transferring the old PF account to the new account. We will tell you how employees benefit by transferring PF account.
Why PF account transfer is a good option
By transferring the PF account, the employee’s membership does not end. Secondly, compound interest is earned on the amount deposited in the PF account, i.e. interest is earned on interest. Compound interest proves to be very helpful in creating a large fund. Apart from this, if one contributes to the PF account for 10 consecutive years, then the employee also becomes entitled to get pension.
PF account transfer will create a huge fund
You can create a huge fund through PF account transfer. Understand it like this, if your basic salary is Rs 15,000, then every month you and the company together deposit about Rs 3600 in the PF account. Currently, EPFO is offering an interest of 8.5 percent. This means that in 15 years, a fund of about Rs 12 lakh 94 thousand will be deposited.
Similarly, if you contribute for 30 years, then a fund of about Rs 55 lakh 46 thousand and after 40 years, a fund of more than Rs 1 crore 29 lakh will be prepared. Let us tell you that this fund is prepared only when there is regular contribution in the PF account.
