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2.8 Years PF Inactive - What Are My Options?

Milind

Milind Vadjikar  |1236 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 09, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Aug 17, 2024Hindi
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This query for a Regional PF expert. I was having my PF contributed for more than 15+ years at a stretch, however 2.8 years ago I took a work sabbatical and since then no contribution nor any transaction is being made to my PF A/c. Since the PF investment is giving me a very attractive rate of 8.25% p.a. I wish to continue with the same as it is, and enjoy the benefits of this very safe investment tool. I read that the PF A/c cannot be inactive for more 3 years. Kindly advise the best way forward, as I am unclear on this 3 year rule.

Ans: If there are no contributions to an EPF account for three consecutive years, it will stop earning interest after that time and become inactive hence it is recommended that you withdraw it and invest in other avenues.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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