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PF Online Withdrawal: Where You should Invest?
As a salaried person, a provident fund is the safest and the most efficient tax-saving instrument for you. This is because it gives you a huge amount at the time of maturity and other retirement benefits such as regular income and pension. At the time that your PF matures, you can either choose to continue your PF online account or invest it elsewhere. When you choose to invest the maturity amount immediately after retirement, you can earn good returns as the PF account will stop gaining interest after 3 years.
Consider your age and risk appetite and take a look at the most profitable investment options.
- Invest in a Fixed deposit
To earn higher interest than on a PF or regular savings account after retirement, invest in a fixed deposit. Apart from its guaranteed returns, it's easy withdrawal, flexible tenor, and easy-to-manage facility make it a preferred investment options for retirees.
You can enjoy a competitive FD interest rate by comparing different options available in the market. For instance, invest in a Fixed Deposit with trusted issuers like Bajaj Finance. This FD has high credibility and offers an FD interest rate up to 8.60% on an FD started for at least 36 months or up to 8.95% if you are a senior citizen when you choose to receive your payout at maturity. This will help you to accumulate more funds as compared to a PF account. You can use the Bajaj Finance FD calculator and know your returns to plan your investment better.
- Park your funds in a Senior Citizen Savings Scheme
It is imperative to invest your funds in secure financial instruments as you get close to the retirement age. Thus, investing in a Senior Citizen Savings Scheme can be beneficial for you. It offers regular income, stability, and tax deductions. You can lock in funds up to Rs.15 lakh for a period of 5 years and earn interest at the current rate of 8.60%. You have an option to extend this scheme by 3 years if need be.
- Open an account in a Pradhanmantri Vaya Vandana Yojana pension scheme
To enable senior citizens to be financially secure after retirement, this pension scheme was implemented through the Life Insurance Corporation of India. Under this scheme, you can earn assured returns at an interest rate that is currently at 8%. You can opt for monthly, quarterly, half-yearly or annual interest payout options as per your financial goals. To earn a pension for 10 years, you can invest up to Rs.7.5 lakh under this scheme. This is why investing your PF balance here will benefit you.
- Put your money in tax-free bonds
As a retiree, invest in tax-free bonds by the government that is not currently available in the primary market. These bonds are issued by government-backed institutions like Power Finance Corporation Ltd (PFC), Indian Railway Finance Corporation (IRFC), National Highways Authority of India (NHAI) and Rural Electrification Corporation Ltd (REC). You can buy or sell them on the stock exchange as they are listed securities. However, you should know that they are long-term investments that mature after 10, 15 or 20 years. You can choose to invest your PF amount in one of the above-mentioned options to build a huge corpus for a stable retirement. Regardless of your risk appetite, Invest in an online FD to create a safety net that you can fall back on. This will ease your management process as well as add value to your portfolio.