Dear All, I would like to know what is the benefit in contributing the amount to PF? Instead the same amount can be kept in the bank? And also want to know what is the interest would be getting?
From India, Bangalore
Acknowledge(0)
Amend(0)
1From India, Bangalore
Acknowledge(0)Amend(0)
Provident fund is a scheme by the government of India in which a portion of an employee's salary is deducted, and an amount equal to the employee's deducted salary is added to it by the employer, kept in a PF account. This amount accumulates monthly. A yearly 9.5% compound interest is paid on this amount. The total amount, along with the interest, is given back to the employee at the time of retirement or resignation. The employee can also withdraw a non-refundable amount for specific purposes such as children's education or marriage, purchasing immovable property, or seeking treatment for illness.
These facilities are not provided by banks, even though the schemes are different. If you keep the same amount in a bank, the employer's contribution will not be present, and the interest rate is also higher compared to bank interests in PF. For further details, you can search on Google.
From India, Mumbai
Acknowledge(1)Amend(0)
These facilities are not provided by banks, even though the schemes are different. If you keep the same amount in a bank, the employer's contribution will not be present, and the interest rate is also higher compared to bank interests in PF. For further details, you can search on Google.
From India, Mumbai
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx