News India Live, Digital Desk: EPF Interest Rate: If you are employed and in the Employees Provident Fund (EPF), money is deposited from your salary every month, then this news is very important for you. EPF is the most trusted retirement saving scheme for employed people, which provide better interest rate and tax exemption. But if you have changed the job and the old EPF account has not been transferred to the new employer, then you may suffer a lot.
What happens if EPF account is not transferred?
When you change the job, your EPF account does not automatically transfer to a new company. For this, you have to go to the EPFO member service portal and process the account transfer. Many people forget it or avoid it, which has to lose the extra money they get as interest.
How long does interest get interest on old account?
Interest on the old EPF account is available for only 3 years. According to EPFO’s rules, if there is no transaction in your old account for three years (ie money does not accumulate), then the account becomes inactive and the interest stops getting interest. For example, if you changed the job in 2020 and did not transfer the old account, after 2023 you will stop getting interest on that account.
What is the loss due to the closure of interest?
FY 2024-25 has an EPF interest rate of 8.25%. If you did not transfer an old account, then after three years, you will not get compounding interest (compound interest). This can cause you a big economic loss in the long term. Also, due to KYC, bank account and lack of Aadhaar update in the old account, there may also be difficulty in withdrawing money.
How to transfer EPF account?
Transfer EPF account online immediately as soon as the job changes. Go to the EPFO website and login with the UAN and Aadhaar number and apply for account transfer by following the simple process. With this, your entire amount will be deposited in one account, interest will continue and you will be able to save good for retirement with better returns.
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