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Did you know that a PF can be withdrawn online? Read ahead to find how.
A Provident Fund Account or a PF is also known as Employee Provident Fund (EPF). It is one of the best types of savings schemes as you end up saving for almost all your working life. Think of it as an investment plan dedicated solely for your retirement.
To begin with, a PF is where employees contribute a part of their monthly salary (12% of the basic pay) to a PF account. As an addition, the employer also contributes an equal amount. The combined amount is your retirement corpus.
Recently, the Employees’ Provident Fund Organisation has allowed an employee to withdraw funds from their PF account in case of an emergency. When your PF account is opened by the company, you receive a Universal Account Number (UAN). Through this UAN, you can access your PF account online. It is like your net banking ID, you simply register using the user id (UAN) and set a password and access your account anytime you want. Also, the PF account is portable throughout your life, you need not worry when switching to a new job.
You can withdraw from your PF Account anytime you want. The most dominant times where you can make a withdrawal are:
Yes, you can file an online claim for PF withdrawal and we will tell you how. As mentioned before, EPFO has made the entire process online and hassle free. Simply visit the official website of EPFO at unifiedportal-mem.epfindia.gov.in and log in with your UAN id and password.
Before you log into EPFO’s official website, ensure that your PF account is linked to your Aadhaar card, mobile number and registered bank account.
A mutual fund is still a financial product that is not considered safe as per many Indian investors. The delayed returns and fear of losing money makes mutual funds a scary mode of investment for some people. However, the truth is far from reality. While it is a fact that mutual funds are not completely risk-free, it doesn’t mean you will lose your money. There are specific reasons why some people lose money in mutual fund investments.
It is not possible to entirely avoid risk when you are investing in mutual funds, be it equity or debt. However, you can make risk tolerable by selecting the right mutual fund scheme. All you need to do is choose schemes that match your investment goals, risk profile and investment horizon. It may sound like a simplistic approach, but it has helped many investors to create wealth to meet their long-term goals.
The pension amount is regulated by the Employees’ Pension Scheme, 1950 whereas the PF amount is regulated by the Employees’ Provident Fund Scheme, 1952.
Only withdrawal from your PF Account has many benefits
Recommended Read: 5 Popular Small Savings Schemes To Choose From