As an employee of an organisation, it’s likely that you have an Employee Provident Fund account. This is a government scheme that helps you build a substantial corpus over your working years, as both you and your employer contribute to it each month. Currently, you receive 8.60% interest on your EPF investment and you can avail of the amount when you retire or resign.However, there are certain rules governing withdrawal. Take a look at what they are.
Full or partial withdrawal
You can withdraw your EPF balance in full under the following circumstances:
When you retire
When you are unemployed for 2 months or more
If you’re applying for withdrawal owing to unemployment, you will have to testify your employment status through a gazetted officer. Also, you cannot withdraw your PF Account Balance in full while switching from one job to another, as it is against the PF withdrawal rules.
Partial withdrawals only
You can withdraw your PF balance partially under the following circumstances, subject to you certain conditions. Take a look at what they are.
You can withdraw up to 50% of your contribution for your, your children’s or your sibling’s marriage expenses, provided you complete 7 years of continuous service.
You can withdraw up to 50% of your contribution to meet your, or your children’s higher education expenses, provided you complete 7 years of continuous service.
You can withdraw an amount equal to 24 times your monthly wages plus dearness allowance to purchase land, provided you complete 5 years of continuous service. Note that the land you buy should be registered in your or your spouse’s name. Optionally, you must be co-owners.
You can withdraw an amount equal to 36 times your monthly wages plus dearness allowance to purchase or construct a home, provided you complete 5 years of continuous service. In this case the home you buy should be registered in your or your spouse’s name, or both of you should jointly own the property.
You can withdraw up to 90% of your and your employer’s contribution for home loan repayment, provided you complete 10 years of continuous service. This home has to be in your or your spouse’s name. A property that both of you jointly own is also eligible.
You can withdraw up to 12 times your monthly wages for home renovation, provided you complete 5 continuous years of service.
Once you are 57 years of age, you can withdraw up to 90% of your accumulated balance along with interest.
Procedure for EPF withdrawal
You can withdraw your EPF balance both online and offline. Here’s how.
You can withdraw your EPF balance by submitting a physical application form once you download it from the EPFO website. Fill it and include details of your withdrawal needs and amount, have it attested by your employer and submit it at your nearest EPFO branch.
Visit the UAN portal at http://unifiedportal-mem.epfindia.gov.in/memberinterface/. Login using your UAN, password, and the CAPTCHA code and select ‘Purpose for which advance is required’. Enter the amount that you want to withdraw and your address, and submit your application by ticking on the certification. Remember to submit scanned copies of documents justifying your withdrawal needs. Thereafter, your employer will approve your withdrawal request and the funds will be deposited in your registered bank account within 15–20 days.
Once you submit your claim, you can track the PF status online. Here’s how to go about it.
Check PF status
To check your PF status online follow these steps:
Login to the EPFO portal
Choose ‘Online Services’
Select ‘Track Claim Status’
Additionally, you can also check your PF balance before maturity, should you wish to. If you’re wondering how to check PF balance, note that you can do so via SMS, a missed call, the EPFO website (using UAN), UMANG app and the EPFO app.
Once you withdraw your PF balance, consider investing it in a Bajaj Finance Fixed Deposit to grow it further, while keeping it safe. Investing in FDs will keep your nest egg protected from market fluctuations and will allow it to grow substantially too. Not only do Bajaj Finance FDs have high stability ratings from CRISIL and ICRA, they offer interest rates of 8.95% to senior citizens and 8.60% to regular investors when you invest in an FD with interest payable at maturity for at least 36 months.
To get started, use the FD calculator to determine your returns and ladder your FDs if you wish to. Then, simply fill a short form to apply!