People often think that their PF account will be closed or that interest will stop accruing after they leave their job. But the rules of the Employees’ Provident Fund Organization (EPFO) say something else. The truth is that even after you leave your job, your PF money remains completely safe and continues to earn interest for a long time. This rule is very important for anyone who moves from one job to another or takes a break from work.
PF will remain active even after leaving your job
According to EPFO rules, your PF account does not become inactive immediately after you leave your job. Even if you leave your job at the age of 40 or 45 and do not withdraw your PF funds, your account will continue to earn interest until you reach the age of 58. This means that your money will continue to grow until your retirement age. This rule is extremely beneficial for those who frequently change jobs or take a break from work for some time.
How long will you receive interest after 58
If you don’t withdraw your PF funds by the age of 58, the EPFO pays you interest for the next three years, until you reach the age of 61. However, after the age of 61, your PF account is considered inactive, and interest accruals cease. It’s important to note that even though interest stops, your principal remains completely safe, and you can withdraw it whenever you wish, as per the rules.
PF Withdrawal Process and Benefits
The entire PF withdrawal process is now online. You need to log in to the EPFO website using your UAN (Universal Account Number). After updating your KYC, you submit your claim online. The funds are usually deposited directly into your bank account within 7 to 8 working days. Currently, EPF offers an interest rate of around 8.25%, making it a safe and reliable long-term investment. Therefore, instead of hastily withdrawing your PF, it may be wise to save it for the future.