PF Tips: Withdrawing money from PF repeatedly will be costly, understand these important rules before withdrawal..

Savings are useful in difficult times. Whether the savings are in your savings account or PF account, you can use it in difficult times in the coming times. There is no problem in withdrawing money from the savings account several times, but if you withdraw money from the PF account repeatedly, then you are causing a great loss to yourself. If money is being deposited in the PF account from your salary, then it should be withdrawn only when needed. In this news, we tell you what the disadvantages of repeatedly withdrawing money from the PF are.

What happens is that as soon as money appears in the PF account, we withdraw it even when there is no need and spend it. We forget that we get the benefit of compound interest on the amount deposited in the PF. This benefit ends as soon as the money is withdrawn.

How is money withdrawn from PF?

Money can be withdrawn from the PF in two ways. First as half amount and second as full amount. Half the amount can be withdrawn while on the job, while the full amount can be withdrawn after retirement or after leaving the job.

Rules for withdrawing half the amount
As we told you, you can withdraw half the money from the PF while on a job. However, the government has imposed some conditions for this, such as money can be withdrawn only for marriage or children's education, buying, building, or repairing a house, medical problem, or paying the electricity bill. One thing to note is that money can be taken only up to different limits for each reason.

Rules for withdrawing the full amount
You can withdraw the full amount after the age of 58 years or retirement. There is no rule or condition for this. On the other hand, if you have left the job and are unemployed for 2 months, then you can withdraw the entire amount of PF. However, if it has been only 1 month since you left the job, then you will be able to withdraw only 75% of the total deposit amount.

What are the disadvantages of withdrawing money repeatedly?

As we told you, the amount deposited in PF gives returns in the form of compound interest. If money is withdrawn repeatedly, you will not be able to take advantage of the magic of compounding.

For marriage or children's education, you can withdraw the amount only three times, so if you are withdrawing money repeatedly with this option, then there can be a problem later.

Withdrawal of PF money before 5 years is taxed. However, after 5 years, it becomes tax-free.

Withdrawing the amount several times in a year defeats the purpose of PF. Due to a lack of savings, the PF account becomes empty at the time of medical emergency or need.

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