We have many PF schemes implemented to save our money. If you are a government employee then you will be most profitable person. This is because after your retirement you will get large amounts of PF as some amounts government will add into our account. Government will also add some interest to our PF amount to satisfy us. We also have an option to take loans from our Provident fund when needed. We have same option for some reputed private organizations also. But there we have to pay some amount of interest to take loans. There are too many limitations to take loans from private organizers and some will not allow to proceed with loans.
Employer Provident Fund (EPF) is the most important type of provident fund to save money. This will act as security for employer. Interest will be calculated on our basic salary. An employer may contribute about 10% to 12% of his/ her monthly salary. The EPF’s account holder can nominate his family members as a nominee. On any unfortunate event in our family, the family member of the EPF subscriber might receive some amount of money as insurance coverage. Previously this was around Rs 1.56 Lakh only. But after 2001 act this was increased to Rs. 3 Lakhs. We can also maintain other account including Employer Provident Fund.
Interest will be calculated on the percentage provided by the organization. All government organizations and university based organizations will add offer more rate of interest to our provident fund account. PF rate of interest may also depend on the time period. The rate of interest is by the central government changes periodically. The rate of interest on EPF deposits for first three years was 8.5%, next two years was 8.75% and this continuously increases depending on our working period.