Not Transferring old EPF Accounts after job change make's you earn higher interest?:

Not Transferring old EPF Accounts after job change make's you earn higher interest? For salaried employees in India, the Employees' Provident Fund (EPF) is one of the best-known and most trustworthy retirement savings instruments. The EPF provides a tax break and also an attractive interest rate on the money you save. If someone has shifted their job but did not transfer their past EPF account to the new firm. A question will arise in your mind, whether you will still receive interest on your old EPF account or if you’re losing out on higher returns.

If you don't transfer your EPF account, what happens?

When you change jobs, your EPF (Employees’ Provident Fund) account doesn’t automatically move to your new employer. You have to transfer it yourself using the EPFO Member Sewa portal. Until you do that, your old EPF account stays as it is, but your Universal Account Number (UAN) remains the same. Many people don’t transfer their account either because they forget or wrongly believe that the money in the old EPF account will always earn interest.

So, does the old EPF account still earn interest if you don't transfer?

Yes, but only for some time. As per EPFO rules, your old EPF account will keep earning interest for up to 3 years (36 years) after the last deposit. But if no money is added for 3 years and you’ve left your job or retired, the account becomes inactive, and it will stop earning interest. Hence, if you have not yet transferred your EPF account after changing your job, your previous EPF account will continue to earn interest from previous contributions just for the period of three years. After that, your money stops growing, and you miss out on possible earnings, especially since the EPF offers a fairly high interest rate (8.25% for the financial year 2024–25, as approved by the EPFO).

One should know the following things while transferring the EPF account

To make sure you keep earning the full EPF interest and build a strong retirement fund:

• Transfer your EPF account as soon as you change jobs using the EPFO Member Portal.
• Make sure your bank details, Aadhaar, and PAN are correct, and your UAN is active.
• Regularly check your passbook to track interest earned and money added.

Avoid taking out money earlier from your EPF account unless it’s really urgent, so you benefit from long-term growth.