Read The Best Way to Invest Provident Fund Savings Online

provident fund

In 2018, the Government of India introduced various changes regarding EPF savings for the salaried individuals in India. For instance, under the Pradhan Mantri Rojgar Protsahan Yojana, it committed to paying the full amount of employer’s contribution towards EPF and EPS for new recruits. This contribution will continue for the initial three years of employment.

With the EPFO presently covering 190 industries, it allows retirement saving opportunities to approximately 200 million accounts operating in the country. While a lifetime of savings can result in significant corpus creation by the time one retires, EPFO members can further grow their funds through PF investment.

Opting for some of the best investment options available online like fixed deposit can result in promising corpus growth.

Now, take a look at a few best investment options that you can opt for when looking forward to investing your Provident Fund.

Best ways to invest Provident Fund savings online:

Opting for a smart investment option can help in wealth creation as well as generation of periodic income from the available savings. You can thus choose any of the following high-yielding investment options to park your funds.

  • Fixed deposit

Fixed deposits come off as one of the best ways to invest your PF fund balance. It is an investment option that comes with assured high returns along with multiple other benefits.

As FDs are a risk-free investment, it offers safety of the invested amount along with interest earned on the same at applicable rates of interest. Thus, fixed deposits are better than any other investment options.

Another reason why it is a preferred investment avenue is that it offers one of the highest ROIs among risk-free earning options. Other benefits of these investment options include the following.

  • Higher returns for investors qualifying as senior citizens.

  • Facility for multiple deposits.

  • Easy auto-renewal of fixed deposit.

  • Loan against the amount deposited.

Additoinally, some of the financial institutions like Bajaj Finance also bring assured stability in returns through their stable ratings like FAAA from CRISIL and MAAA from ICRA.

These investment options also come with a simple online application procedure, that makes opening FDs convenient. Thus, if you are looking for a risk-free investment option along with stable capital growth, fixed deposits are the best options to go for.

You can opt for cumulative or non-cumulative FDs. While the former allows you to grow your corpus and withdraw at maturity, the latter comes with periodic payout options. FDs thus also serve as investment tools that generate regular income.

Senior citizens looking for regular earning from their PF fund balance can thus opt for payouts from their non-cumulative FDs on per-month, per-quarter, semi-annual or annual basis. With the best financial institutions, you can choose the best FD plan in 2019 by investing as low as Rs.25,000.

  • SCSS

Senior citizens can utilise their Provident Fund balance to create a safety net for their retirement years. With a high interest rate of up to 8.3% and investment tenor of 5 years, you can park anywhere between Rs.1,000 and Rs.15 lakh in Senior Citizens Savings Scheme (SCSS) to generate regular returns.

It is another earning option with high stability, lest with a little lesser interest-fetching capacity than FD.

  • Mutual funds

For those who are ready to take some risk for a higher earning, the money market also comes with investment options like mutual funds.

While being exposed to market volatility, these avenues offer better liquidity than other investment options mentioned here. You must, however, closely monitor the market changes to maximise profits from the Provident Fund invested here.

While investment options like mutual funds offer better liquidity, FDs offer assured returns with high stability along with substantial corpus growth. You must assess your funding requirements and risk-taking capacity to choose the best online investment option for your PF fund balance.