Provident Funds – A Collective Fund for Individual Stability

Provident Funds are specialized funds which are deemed as compulsory accounts that need to be maintained by individuals as a pre-requisite for their retired life. The main characteristic that defines Provident Funds is that are opened in the name of the account holder, but maintained and subject to change, according to the whims of governmental or special regulatory bodies.

If you know how to manage your PF well, you will be able to reap benefits that few other financial instruments can offer, especially when it comes to financial independence after retirement.

What Are the Interest Rates Associated with PFs?

These interest rates are subject to change on a yearly basis, as decided by the Board of Trustees, depending on factors stemming from governmental regulations and market trends. With these Provident Funds, you don’t have to pay any taxes, even when you withdraw from the account after five years or more.

What Are the Different Types of PFs?

There are mainly three different types of PFs, which exist amongst the various financial instruments that are a part of this realm of services. These include the following:

  • The General Provident Fund is a type of PF which is maintained by governmental bodies, including local authorities, the Railways and other such bodies. Thus, these types of PFs are mainly defined by the government bodies.
  • The Recognized Provident Fund is the one which applies to all privately-owned organizations that contain more than 20 employees. Moreover, holding a rightful claim to the PF associated with your organization, you will be given a UAN or Universal Account Number. This enables you to transfer your PF funds from one employer to another whenever you move from one occupation to another.
  • The Public Provident Fund is defined by the voluntary nature of investment on the part of the employee. The PPF is also associated with a minimum deposit of INR 50 and a maximum amount of INR 1.5 lakhs. This PF also comes with a pre-determined maturity period of 15 years, only after which any form of withdrawal can be done from the account.

What Are the Various Ways in Which You Can Check Your PF Balance?

Some of the various ways in which you can check your PF balance include the following:

  • Download the UMANG app
  • Access the EPFO website
  • Send an SMS to 7738299899 with the words EPFOHO UAN ENG
  • Give a missed call on 011-22901406
Type of PF Nature of PF Nature of Deposit
General PF Applicable to government bodies Compulsory
Recognized PF Applicable for employees of private organizations Compulsory
Public PF Applicable to everyone who is a part of the general public Voluntary

Withdrawal, Transfer and Claiming of PF

When it comes to withdrawal of your PF funds, you can either choose to submit a physical application or an online application. The best way to do it is to hop onto the EPFO website and use any of the following information to initiate a transfer or a withdrawal process:

  • UAN
  • Digital Signature
  • Aadhar Card and Personal Details

Each of these can be used in one or several different processes involved in terms of all three procedural aspects. For the purpose of PF transfer, the form that needs to be filled up is Form 13. On the other hand, the forms associated with withdrawal or claims include Form 31 (Part Withdrawal of PF funds), Form 10C (Pension Withdrawal) and Form 19 (Final PF Settlement).

Characteristic PF Bajaj Finance FD
Tax exemption Yes No
Maturity date Minimum 15 years for PPF. For RPF/GPF, maturity date is dependent on the employment tenure of the account holder 12 to 60 months
Flexibility of tenure Yes, but will be taxable if done before 5 years Yes
Interest Rates Fluctuate on a yearly basis as per the decisions of the PFO Up to 8.60%
Minimum Initial Deposit INR 500 INR 25000

How Can You Invest Your PF Money?

When you withdraw your Provident Fund money, you get a surplus amount of funds that you can use as your retirement funds. You can always grow your retirement funds by investing your PF money in safe investment instruments.

To make your PF funds grow over time, you can consider investing your money in Fixed Deposits, which help you multiply your earnings and gain from high returns. You can consider investing in Bajaj Finance Fixed Deposits, where you get to choose your tenor and benefit from periodic interest payouts.

Still Confused? Contact Bajaj Finance Customer Care to clear all your doubts or check online procedure to open FD