Holding an EPF Account can be really beneficial for the employees. It is often the best investment made by people in their lifetime and if you are wondering that why it is known as the best investment in Life here are the 4 benefits that will make you believe in this fact.
Higher Interest Rate– You earn a much higher rate on the EPF Deposit when compared with any other saving scheme. The interest rate is revised now and then but it is still at the higher end. In addition to this, soon, you will have a control of the investment in the ETFs made via EPF Account.
Tax-Free Interest Earning– The best part about EPF is that the interest component is tax-free. This means that you can earn over a lakh of interest every year and you will still not be taxed. This is the greatest advantage of having an EPF account. Moreover, your contribution towards the EPF is also tax deductible.
Insurance and Pension– Apart from the benefits mentioned above, the EPF account holders also get a life cover of Rs 6 Lakhs in addition and apart from this, the employee is also eligible for a life-long pension when the employee has contributed for 10 years or more.
Savings for Future Events–EPF also helps in saving the money for future events like the child’s education, purchase of a home or medical situations. Without EPF, it can be difficult to save regularly and hence it brings in the discipline to the investment behavior of the person. At the time of emergency, a part of the fund can be withdrawn by the EPF Account Holder.
With all these benefits you must be assured about the fact that benefits in EPF Account are certainly one of the best investment in your life.