This is the first post of the series and covers EPF.
1. What is EPF?
EPF stands for Employees Provident Fund. It is a mandatory form of saving. Employee and the employer, both have to contribute to this fund. 12% is the minimum that needs to be added to it and employer has to match till this amount. It is of two types:
2. What is interest rate of EPF?
Interest rate for PF accounts is fixed by Central Government every year in March / April.
3. What is the lock in Period?
Lock in period is till you get retired. In general, till you turn 55, your money will be locked in PF.
4. How to get the money back?
Full amount can be withdrawn in case of:
90% of it can be availed after attaining age of 54 or within one year before actual retirement, whichever is later.
Various loans can also be availed against PF.
When shifting the jobs, PF balance can be transferred.
5. Is interest accrued on savings is Taxed?
No income tax will be applicable on money withdrawn at the time of retirement. So, in a way interest is not taxed.