PF Account Not Earning Interest? Here’s What You Must Do Immediately
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The Employees’ Provident Fund Organisation (EPFO) has announced an annual interest rate of 8.25% for EPF accounts for the financial year 2024–25. This interest is calculated every month on the closing balance but credited only once a year. However, there’s a catch: if your account remains inactive for 36 months (three years) without any deposits or withdrawals, the interest will stop.
On 27 August 2025, EPFO clarified this rule through its official social media handle, reminding members to keep their accounts active.
What Counts as an Inactive EPF Account?
An EPF account is considered inactive when there is no financial transaction in it for three consecutive years, other than interest credits. Importantly, after retirement, your EPF account continues to earn interest only for three years.
For instance, if you retire at the age of 55, your EPF account will remain active until you turn 58. After that, it becomes inoperative, and no further interest will be credited.
To avoid this, employees changing jobs must open a new EPF account and transfer the old balance, while those who are not working should consider withdrawing their EPF savings before it becomes inactive.
Why Keeping Your EPF Account Active Matters
EPFO has urged members to ensure their accounts remain active to avoid losing interest earnings.
Failing to act on time can mean losing valuable interest on your hard-earned savings.
EPFO 3.0: A Digital Upgrade Coming Soon
EPFO is also preparing to launch its new digital platform, EPFO 3.0, designed to modernise fund management and speed up claim settlements.
Originally expected in June 2025, the launch has been delayed due to technical reasons. Once rolled out, EPFO 3.0 will offer exciting new features, including:
To implement the project, EPFO has shortlisted three major IT giants- Infosys, TCS, and Wipro to handle development, operations, and maintenance.
Your PF account is not just about saving, it’s about ensuring those savings grow over time. But if your account is left inactive for too long, you risk losing the interest benefit. Keep your account updated, transfer old balances, and take advantage of upcoming digital upgrades like EPFO 3.0 to make managing your funds simpler and faster.
Disclaimer: This article is for educational purposes to provide general awareness about EPFO and PF account-related updates. Information mentioned are only for reference and should not be considered as financial advice or recommendations. Readers are advised to verify details from official EPFO sources and consult a qualified financial advisor before making any decisions related to their provident fund or investments.
On 27 August 2025, EPFO clarified this rule through its official social media handle, reminding members to keep their accounts active.
What Counts as an Inactive EPF Account?
An EPF account is considered inactive when there is no financial transaction in it for three consecutive years, other than interest credits. Importantly, after retirement, your EPF account continues to earn interest only for three years.
For instance, if you retire at the age of 55, your EPF account will remain active until you turn 58. After that, it becomes inoperative, and no further interest will be credited.
To avoid this, employees changing jobs must open a new EPF account and transfer the old balance, while those who are not working should consider withdrawing their EPF savings before it becomes inactive.
Why Keeping Your EPF Account Active Matters
EPFO has urged members to ensure their accounts remain active to avoid losing interest earnings.
- If you’re still working: Transfer the old EPF account into your current one.
- If you’re not employed: Begin the process of withdrawing funds before your account crosses the 36-month inactivity limit.
Failing to act on time can mean losing valuable interest on your hard-earned savings.
EPFO 3.0: A Digital Upgrade Coming Soon
EPFO is also preparing to launch its new digital platform, EPFO 3.0, designed to modernise fund management and speed up claim settlements.
Originally expected in June 2025, the launch has been delayed due to technical reasons. Once rolled out, EPFO 3.0 will offer exciting new features, including:
- Faster claim processing
- Direct withdrawals via UPI
- Improved digital facilities for members
To implement the project, EPFO has shortlisted three major IT giants- Infosys, TCS, and Wipro to handle development, operations, and maintenance.
Your PF account is not just about saving, it’s about ensuring those savings grow over time. But if your account is left inactive for too long, you risk losing the interest benefit. Keep your account updated, transfer old balances, and take advantage of upcoming digital upgrades like EPFO 3.0 to make managing your funds simpler and faster.
Disclaimer: This article is for educational purposes to provide general awareness about EPFO and PF account-related updates. Information mentioned are only for reference and should not be considered as financial advice or recommendations. Readers are advised to verify details from official EPFO sources and consult a qualified financial advisor before making any decisions related to their provident fund or investments.
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