I work in the tech space.I quit my job after 4 years and 9 months.
I am not going to a new job but am taking a sabbatical. I guess it's more of a short break. After this break of 2-3 months, I will be looking for jobs in the start-up space. So the possibility of transferring my PF to the new employer are low (given that start-ups in India rarely have a PPF account/system).
Due to this, I'm not sure of the decision to take on my PF balance. The way I see it, I have two options:
Transfer current PF amount to PPF (The public PF scheme backed by Govt. of India)
Withdraw the money and find a new form of investment.
From initial analysis, it looks like the traditional/conservative advice is to invest it in the PPF since it serves a dual purpose: your money grows safely while you can apply for interest free loans on it too. However I stumbled upon an internet article that says this borrowing is allowed only after 6 years of investing in the PPF.
I would appreciate the financial experts' advice. Specifically:
- What are the pros and cons of either option?
- Is there any other 3rd solution for this situation?