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Some people leave their jobs by the age of 40 to pursue other ventures. A major concern for them is what happens to the money accumulated in their PF account. While one can withdraw PF funds immediately upon leaving a job if they have worked until age 58, quitting at 40 does not mean the money in your PF account stops earning interest. However, withdrawing the funds at that stage would result in a significant financial loss.

**Interest Earned on PF Accounts**
The EPFO ​​has stated that if you hold a PF account with a balance, it continues to earn interest until you reach the age of 58. This interest is calculated on a compound basis, allowing the funds to grow at an accelerated rate. Even if you leave your job and stop making contributions, your PF balance continues to earn interest. The PF account remains active until the age of 58; rules regarding account closure apply only after that age.

**Interest Accrual from Age 40 to 58**
If you have accumulated ₹10 lakh in your PF account by the age of 40, this amount will continue to earn compound interest until you turn 58. This means interest is calculated on the accumulated balance, including the interest earned previously. This process continues until you reach age 58. PF accounts currently offer an annual interest rate of 8.25%. Consequently, if you have ₹10 lakh in your account, it will earn interest for 18 years, resulting in a total accumulated amount (principal plus compound interest) of approximately ₹45 lakh.

However, if contributions to your PF account cease, the account is no longer considered 'active.' In such a scenario, you do not receive the EDLI insurance cover.

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