Now Get Interest on EPF Accounts That Have Been Inactive For Three Years

If a person doesn't take the money out three years after retirement, he/she will not get any interest.

Written by: India.com News Desk

Updated: August 23, 2017, 10:34 AM IST

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New Delhi, August 23: The Employees Provident Fund (EPF) is considered to be one of the safest means of investment for salaried people. The fund not only gives a good interest on the savings, it also saves income tax. However, a big problem for account holders was that that EPFO didn’t offer interest on inactive accounts. Well, there is good news for account holders– they will get an interest on account inactive for up to three years.

According to reports, the EPFO has decided to give interest on inactive accounts as well. Commissioner VP Joy said the decision was taken to attract employees to invest in the EPF fund. He, however, said that if a person doesn’t take the money out for three years after retirement, he/she will not get any interest.

What was the problem?

EPFO allows conditional withdrawal of funds prematurely. If a person changes his company of employment, he/she needs to change EPF account. Due to this, the EPFO stops giving interest on the old account. Though, the money from the previous account now can be ported through UAN number.