Money from EPF Funds Employees Provident Fund which is also known as PF or Provident Fund is a savings scheme that is mandatory for the employees of a company that is registered under EPF. Under this scheme, you contribute a fixed amount from your salary every month and an equal contribution is made by your company as well. The total amount is then deposited in your EPF account and it grows at an interest rate that is revised by the government every year. You can withdraw the accumulated amount along with the interest after retirement or after two months of the unemployment period.
How to Withdraw Money from EPF Funds in 2021
The EPFO (Employees Provident Fund Organization) allows you to withdraw your PF online through its official website. The below procedure can be used to withdraw money from the EPF account:
- Step 1: Before applying for withdrawal, you must get your UAN (Universal Account Number) registered on the EPFO portal. If you don’t have your UAN, you can ask your employer for the same.
- Step 2: Once you get your UAN registered, you will have to wait for a few hours to get it activated. Once activated, you can log in to the UAN portal by using the UAN id and password.
- Step 3: After logging in to your account, you can confirm whether your bank account and KYC details are verified or not. You must also verify whether the details are accurate or not.
- Step 4: After that, you can visit the section ‘Online Services’ and choose the ‘Form-31, 19 & 10C’ i.e. the Claim form. On clicking on it, you will find all the details regarding your service. You will also have to submit the last 4 numbers of your linked bank account and then you can click on the ‘Verify’ button.
- Step 5: Now, you will be required to sign the undertaking certificate with ‘Yes’ and proceed further. After that, you can choose the option ‘Claim Online’ and choose whether you need full or partial EPF settlement.
- Step 6: If you are not eligible for full or partial settlement as per the criteria of service, these options will not be shown on the screen. In such a situation, you can choose to withdraw PF in advance as well. You may also need to provide scanned copies of your documents and then submit your application.
- Step 7: Once your employer approves your request, you will get the PF amount in your account within 20 days.
From this process, it is quite evident that the EPF withdrawal process is quite long and a bit complicated. Also, EPF provides sufficient returns over a longer tenor. If you are searching for an investment avenue that is flexible in terms of withdrawal options and can also provide better returns, you can check the fixed deposit plans offered by Bajaj Finance. The main benefits of investing in a Bajaj Finance FD are specified below:
Impressive FD rates
Bajaj Finance FD rates are up to 7.25% which means that it is much higher than bank FD rates. Also, you can choose a tenor and FD type that is suitable as per your financial needs, and these features are not offered by EPF.
A 0.10% higher interest rate will apply to those who opt for the online method of investing by utilizing the online FD form on its portal. Also, senior citizens will get 0.25% better interest rates than others.
Tenor & interest payout options
A flexible tenor that can vary from 12 to 60 months can be chosen as per your financial plans if you invest in Bajaj Finance FD. Also, the option of monthly interest payout is available if you need regular funds to meet your monthly expenses. The other periodic options include quarterly, six-monthly, and yearly interest payouts.
Unlike EPF, fixed deposits allow you to withdraw your deposits before maturity. You will need to pay only a minimum penalty for availing of this benefit. Also, a collateral-free loan is provided in case you need funds on an urgent basis. The loan amount of up to 75% of your FD value can be applied for and this facility negates the need for premature withdrawals.
EPF is a reliable financial instrument that enables you to save enough money till retirement. However, its withdrawal procedure is a bit complicated and it is more beneficial for those who are looking for a long-term investment option. If you are looking for a flexible instrument that can provide enough returns and is flexible enough to help you achieve your short-term or long-term financial objectives, you can think of the fixed deposit plans provided by Bajaj Finance.
It offers a lucrative FD interest rate of 7.25% and it also gives you the option of investing online. Moreover, you can choose a periodic interest payout to satisfy your regular fund needs. Also, a collateral-free loan can be applied for if you need funds urgently. All these benefits and features make it an excellent investment option for everyone.