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Employee Provident Fund or FD - Better Investment option

122 views 2 replies

Heena Rajendrakumar Juneja

Chartered Accountant

25 Points Joined October 2012

I left job in Aug 2018. Accumulated (Employee's and employer's contibution) to my PF Acc is around Rs. 2 lacs. Since then I haven't joined any other company on account of my marriage. Also, have no plans to rejoin the same. Pls suggest shall I keep amount deposited in EPF acc or withdraw the same and go for FD or any other option.

Replies (2)

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

PF money can be withdrawn after 5 years from the date of 1st investment to enjoy tax free benefit and that too only 75% withdrawal is allowed so if you dont need money in case of any emergency then let it be in PF since it gives 9% interest which is 3% more than what FD gives but i would prefer investing in FD since it can be broken anytime more better option will be mutual funds though.