What Are The Benefits Of Opening A PF Account? Find Out Here

A PF account is considered a social security scheme as it gives post-retirement benefits

The Employees' Provident Fund (EPF) is one of the most widely used investment tools by salaried people. The EPF, popularly known as simply the PF, is a government-backed savings scheme for employees of the organised sector. Considered a post-retirement or social security scheme, most establishments have to extend this facility to their employees. Employees and employers both contribute to the fund, which is handled by the government and, ultimately, withdrawn by the individual on her/his retirement. The individual earns interest on the sum accumulated in the fund over a period of time. Other benefits of opening a PF account are: 1. Loans Individuals can take loans against the money already accumulated in their PF accounts. The interest levied on loans against PF balance is 1 per cent, and the money has to be repaid within three years of the date of loan disbursal.