What is PF (Provident fund)?

Provident Fund is a compulsory, government-managed retirement savings scheme for employees, who can contribute a part of their savings towards their pension fund, every month. These monthly savings get accumulated every month, and can be accessed as a lump sum amount at the time of retirement, or end of employment. Since the provident fund money consists of a large chunk of savings, it can be used to grow your retirement corpus easily.

Types of Provident Funds

There are mainly three different types of PFs, which 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 Rs. 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.

Why should you invest your PF earnings in Fixed Deposit?

While Provident Funds are low-risk investment avenues that can help you grow your money easily, it is important to invest the PF funds in smarter investment avenues that enable you to grow your funds furthermore. Bajaj Finance Fixed Deposit is a preferred investment avenue for setting aside your funds, to multiply them.

Here’s what makes Bajaj Finance FD better than Provident Fund:

  • Flexible investment – Bajaj Finance FD offers higher flexibility in terms of investing, as compared to investing in a PF. For example, the investment tenure in a PF can be as long as 15 years, whereas with FD, you can choose tenures from 12 to 60 months and re-invest as per your needs.

  • Investment amount limit – While the amount of investment gets automatically deducted with EPF, you can invest only up to Rs. 1.5 lakh per year in a PPF. However, Bajaj Finance FD enables you to invest any amount, so you can easily grow your savings without any limit.

In addition to reaping benefits of attractive FD interest rates, you can also withdraw from Bajaj Finance FD after a minimum lock-in period of 3 months. You can also avail a Loan against FD easily from Bajaj Finance to fund your urgent expenses.

Investing in a Bajaj Finance FD is also easier than ever, with the facility to invest online, from the comfort of your home. With Bajaj Finance online FD, you can look to grow your savings easily, and also enjoy an additional rate benefit of 0.10% on your deposit.