PF savings could make you a Crorepathi!!!
20. Dec, 2010 
0 Comments
This article on the Economic Times should put PF saving on the top in the list of methods of savings. Never realized that PF deductions on a modest salary of even 25k would render a balance of Rs. 1,65,00000.00 as retrial benefit (don’t trouble yourself counting the zeros; that figure is Rs. 1.65 crores!!)
Here are the factors which catapult your savings to that height. A systematic continuous PF contribution for a period of 35 years with an interest rate of 8.5% and a tax exemption on the withdrawal amount actually puts the math to that figure. But very few even catch up to the one crore mark since change in organizations tempts the employee to withdraw the savings. So this is what you should not do – do not withdraw the PF; only transfer it to the new PF code with the new employer using the PF Form 13.
So now don’t crib when you see deductions on you salary slip towards PF as the employer is also contribution an equal share and the same is in fact generating an interest no other scheme would guarantee. You never know as time passes and one day you would be rechecking on the zeros of your PF savings.
No comments yet... Be the first to leave a reply!