To ensure that all employees of public and private companies have a secure retired life, the government has a compulsory retirement savings scheme known as the Provident Fund. If your salary is above Rs. 15,000 and your organization employees more than ten people, you are entitled to receive Provident Fund (PF). This fund is formed with a small portion from the employee’s salary and a contribution by the employer. Employees also receive interest on their PF. The fund can be withdrawn by the employee upon retirement or even before that if the need arises. In case of death of the employee, the PF amount goes to his/her family.
Employees’ Provident Fund Organisation (EPFO) is the government body responsible for managing the PFs of all Indians. Every PF member has a 12-digit Universal Account Number (UAN). Ask your employer in case you aren’t aware of what it is. Once you have your UAN, follow the below steps to know your balance:
- Visit EPFO website
- Go to “Our Services”
- Click on “For Employees”
- Open the “Member Passbook” tab
- Fill in your UAN number and password on the newly opened page
There is also an EPFO mobile app that you can download and conduct a PF status check.
Why you should check your PF balance
Provident Fund will form a significant chunk of your savings as long as you do not decide to withdraw it too early. There are quite a few reasons why should periodically check your PF balance:
- When you know how much you will earn from PF, you can plan other investments accordingly to meet your life goals like education/marriage of children, house loan, etc.
- Conduct a PF status check, and if the balance is sizable, you can forget about investing in any other superannuation fund
- Rather you can go for investment options with higher returns, like company Fixed Deposits
- Most importantly, a PF status check lets you take care of the distant future. You can plan ahead and decide what the best way to either utilize or invest the amount is when you will finally receive it.
Multiplying your PF corpus
When you receive or decide to withdraw your PF, you can invest it smartly and see it grow into an even larger amount. Instead of going for traditional options like PPF and bank FDs, opt for a modern and more profitable investment option – Company FDs. Among all company FDs, Bajaj Finance FD is the highest rated product with FAAA/Stable rating from CRISIL and MAAA/Stable rating from ICRA. These grades denote good repayment history and liquidity, meaning you get guaranteed returns. Bajaj Finance FD gives an interest rate of 8.35% for a cumulative FD with 3 years of tenor and further provides interest as high as 8.70% to senior citizens.
EPF is a high debt focus instrument which fails to give good returns when inflation is high. However, with FD, you can earn good returns even when inflation is high. Moreover, it ensures good liquidity at all times with features such as loan against FD and periodic interest payouts.
To spend your post-retirement life respectfully and independently, you can rely only on your savings. So it becomes very crucial to have a substantial corpus after retirement. You can build a substantial corpus with your EPF savings with a safe and stable investment option like Bajaj Finance FD.