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Employee Provident Fund or FD - Better Investment option

Heena Rajendrakumar Juneja (Chartered Accountant) (25 Points)

07 January 2019

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.

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2 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 07 January 2019

PF money can be withdrawn after 5 years from the date of 1st investment to enjoy tax free benefit and that too only 75% withdrawal is allowed so if you dont need money in case of any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.