Shift of NPS to EPF is possible now. And this is latest news on EPF. Moreover, EPFO or Employees’ Provident Fund Organisation recently announced about it. Earlier there was option for shifting funds from EPF account to NPS. But recent reports suggest that another shift is possible.
Shift NPS account to EPF account
In addition, people can now shift back to EPF. However, this is only possible for the people who have NPS account. Here, NPS means National Pension Scheme. Furthermore, EPF authorities say that this move is tax free. Therefore, it will be plus point for the people only.
On the other hand, transferring funds from EPF to NPS is also possible. But for this you must contribute to your EPF account regularly.
EPF vs NPS account, which is better?
It is because of the options of transferring that members can transfer the amounts. Now you can pick any one investment option. Moreover, to help you here, we gave information on both.
EPF or Employees’ Provident Fund benefits
On one hand, rate of return in EPF is better. Because now you can Invest in EPF than fixed deposit with 8.65% interest rate. Hence, it will be plus point for you. Moreover, there are other benefits with EPF. Like you will get housing loan benefits on EPF.
Additionally, there is option of withdrawing 90% of your EPF balance. Thus, you can use this amount to buy plot or property. There is one disadvantage here. And it is that you know EPF rate of return only in November or December. Or it can be after that also. Moreover, this rate of return is for current financial year.
NPS or National Pension Scheme benefits
Apart from that NPS is also good. Because here, tracking NPS investments is easy. Furthermore, you can check NPS funds. As authorities publish returns of NPS funds regularly. Another feature is knowing rate of return before only.
Again there is one disadvantage with NPS. Here, NPS returns link to performance of funds. Therefore, there may be changes.
NPS EPF rules are user friendly
This time the Government of India made easy rules. Thus, it will not be a trouble for anyone. In addition, EPF members or NPS members can shift to other accounts.
Plus, if you shift from EPF to NPS. Then you have one chance to return to NPS. But in case you rejoin EPF. Subscriber can never go back to NPS. Therefore, as subscribers, you must carefully take your decision. Furthermore, employers cannot force employees to switch accounts.
Wait for shifting NPS to EPF accounts
News of shifting from NPS to EPF is not reality. As it is still in planning stage. Therefore, subscribers must wait for some more time. Before, this transferring facility becomes a reality. And till then you can check other things. Because this will help you in taking final decision.
In addition, some financial experts say that it is better if you stay with EPF. As this will benefit you more. However, final decision can be made after some time.
It is so because by then even proposal of NPS to EPF shift will be officially announced. Thus, it will help you to decide. And till the time you know the final result. You can check your EPF balance. Even knowledge of linking Aadhaar card to EPF account will be plus point. You can also keep checking this site to know latest news on EPF NPS.