EPF Account : The Employees Provident Fund Organization (EPFO) provides many facilities to its members so that they can easily take advantage of it. Whether it is checking balance or transferring account, all these services are provided by EPFO. But have you ever wondered what will happen if you do not transfer your PF account to the new company?
Will interest continue to be received on the old PF account?
Many people believe that if they do not transfer PF, the old PF account will continue and interest will continue to be received on it. But the truth is that interest is received on the old PF account only for a few years. According to the rules of EPFO, if there is no contribution in a PF account for 36 months, i.e., 3 years, then that account becomes inactive, and after that, interest stops accruing.
What happens if PF is not transferred?
EPF is counted among the most trusted retirement saving options in the country, which provides tax exemption and a better interest rate. If you have changed your job and have not transferred the old PF account to the new company, then it can be harmful for you. Since the period for getting interest on the old account is limited, it is not right for you from a financial point of view.
How to transfer a PF account?
When an employee joins a new job, the EPF account is not transferred automatically. This process has to be completed by the employee himself. For this, the employee has to go to the EPFO website and apply for account transfer. If the account is not transferred, the old account remains as it is. However, the Universal Account Number (UAN) remains the same, and there is no change in it.
How long will interest be available on the old account?
As mentioned earlier, if there is no contribution to the PF account for 36 months, then that account is declared inactive, and after that, interest stops accruing on it. If you do not make any contribution to your old account, then you will not get the benefit of compounding interest. Apart from this, if Aadhaar, PAN, and bank details are not updated in the account, then there may be problems in withdrawing money or using other facilities.
What are the problems?
When there is no contribution in your old PF account, the biggest problem is that you do not get the benefit of compounding interest. Along with this, if your account is not updated properly (like Aadhaar, PAN, and bank details), then you may find it difficult to withdraw money or avail other facilities.
Conclusion
Not transferring the EPF account not only affects your interest but can also affect the proper management of your money. Therefore, after changing jobs, it is very important to transfer your EPF account to the new company. This not only keeps your funds safe, but you also get the full benefit of interest.
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