The Employees Provident Fund scheme is one of the most popular investment schemes currently present in this country with about 171.4 million accounts as per the latest reports from the EPFO.
Organizations employing more than 20 individuals or more are mandated to register and comply. Along with the contributions from an employer, a portion of the salary of an employee is also deducted every month as a contribution towards this scheme.
More than 75% of the accumulated amount under this scheme can be withdrawn by an employee after one month of unemployment and the rest 25% after two months. Employees can withdraw the amount by merely submitting an application online. Employees must ensure that they are aware of how to withdraw PF amount so they can avail of the amount it whenever required.
The EPF is popularly considered as one of the best schemes for saving money.
Steps to withdraw PF amount
- Step 1 – Employees are required to sign in to the UAN Member portal with their UAN and password.
- Step 2 – They must click on the “Online Services” tab present on the top bar. From a drop-down menu, they will have to select “Claim Form -31”, “Claim Form- 19” and “Claim Form-10” options respectively.
- Step 3 – They will be redirected to another page where they will be able to see the details related to their EPF account. They are required to submit the last 4 digits of their account number and click on the “Verify” option.
- Step 4 – Employees are required to click on the “Yes” button to agree to the terms and conditions and advance to the next step.
- Step 5 – They are required to click on the “Proceed for Online Claim” button.
- Step 6 – Individuals are required to select “PF Advance (Form 31) to continue with the process of withdrawing their PF amount online.
- Step 7 – They will be redirected to a fresh section of a form where they need to mention the purpose of withdrawal, the required amount and their address. The sections for which an employee will not be eligible will be marked in red.
- Step 8 – Employees are required to select certification to submit their withdrawal application.
- Step 9 – Employees may require submitting a few related documents depending on the purpose of their EPF withdrawal.
- Step 10 – Upon approval from the employer, the amount will be withdrawn from the PF account of an employee and deposited to the account they mentioned while filling up the withdrawal form.
Employees will receive an SMS notification on the mobile number registered on the EPFO website. The amount will be credited to their accounts within 15-20 days of application. Also, employees can opt for a physical withdrawal if they are not aware of how to withdraw the PF amount online.
Although PF is a beneficial scheme, it does not provide regular payments to an employee. If they are looking forward to generating a monthly income with an investment, they can invest their funds in fixed deposits.
Benefits of investing in a fixed deposit –
- Assured returns
The rate of interest in the case of a fixed deposit does not vary according to market fluctuations. Investors can expect guaranteed returns at the prevalent interest rate when they deposit in this scheme.
- Flexible tenors
Fixed deposits are one of the best savings schemes in India as it comes with an extensive range of tenor options. Financial institutions like Bajaj Finance offer investment tenors of up to 5 years with their FDs. Furthermore, they can withdraw their funds in case of emergencies against a minimal penalty fee.
- Increases profit margin
The rate of returns in case of a fixed deposit is much higher compared to a PF account. Interest rates in case of such deposit schemes depend on the tenor of investment. However, there are a few financial institutions that offer a rate of return depending on the anticipation of fluctuation of Repo rate by RBI.
- Extensive range of payment options
Unlike EPF, individuals can avail of the interest earned from fixed deposits in parts according to their requirements. Furthermore, they can also opt for cumulative FDs to reinvest the interesting part and withdraw the total amount to earn more from their fixed deposits.
The above-mentioned points will ensure that you know how to withdraw PF amount online. Ensure that you obtain your UAN beforehand to withdraw funds without any hassle.