EPF Akaun Fleksibel (Akaun 3): How to Withdraw EPF Account 3

How to withdraw EPF account 3 online? Learn more about EPF account 3 withdrawal limit & how many days it takes to withdraw your akaun 3 (fleksibel) here!

Considering using your EPF money to buy a car or for another purpose but feeling uncertain? You've come to the right place! Read on for more info.

The Employee’s Provident Fund (EPF) will restructure members' accounts on May 11, 2024. Contributions will be split into three accounts:

• Akaun Persaraan (Account 1) for retirement
• Akaun Sejahtera (Account 2) for well-being needs
• Akaun Fleksibel (Account 3) for short-term financial needs 

The split will be 75% to Account 1, 15% to Account 2, and 10% to Account 3.

Existing savings will remain intact, and a one-time transfer from Account 2 to Account 3 is permitted. Withdrawals from Account 3 require a minimum of RM50 and can be done via the KWSP i-Akaun app or EPF branches. There is no option to opt out of this new structure.
The dividends will remain the same across all three accounts although this may change in the future. This has also been confirmed by EPF’s official X account.

With the latest update to their online platform, the Employees Provident Fund (EPF) allows you to transfer money from Account 2 (Akaun Sejahtera) to Account 3 (Akaun Fleksibel). All members under 55 years old have an automatic account creation process called Account 3, which gives them the freedom to withdraw the fund at any time. 

This is a step-by-step tutorial on how to do EPF Account 3 withdrawal by doing a one-time transfer:

The KWSP i-Akaun app, which can be found on the Huawei App Gallery, Google Play Store, and Apple App Store, is the quickest way to perform a one-time transfer. As an alternative, you can access the official EPF website. 

You will need to complete an eKYC (electronic Know Your Customer) process if you have never registered an i-Akaun app before. This process entails scanning your identification card, verifying your TAC, and taking a selfie. 

Step 1: After opening the KWSP i-Akaun app, the "Akaun Fleksibel: Meet today's goals, shape tomorrow's dreams" banner should be visible on the updated home screen. Select "Learn more".

Step 2: The app will walk users through a visual explanation of the newly reorganized EPF accounts, including Account 3 (Akaun Fleksibel), the rate at which contributions are distributed, and the option to transfer the initial amount. Press "Next" to proceed. 

Step 3: After that, the app will draw attention to the initial amount transfer option, which is available for one-time use only through August 31, 2024. To find out more about this one-time opportunity available to EPF members, you can read the FAQ. 

The KWSP iAkaun app even calculates your EPF account balances BEFORE and AFTER the one-time transfer is completed, for added clarity. 

Step 4: After reading the terms, you must make a final member's declaration if you are certain you want to do the one-time transfer. To confirm your choice, you must first click "Accept" and then "Yes". You will see a confirmation page with a confirmation number after the submission is finished. 

Below is a detailed guide from EPF that walks you through the process: 
 

Things to know about the one-time transfer - EPF Account 3 withdrawal limit: 

Keep in mind that the amount that is transferred from Account 2 to Account 3 depends upon your current balance in Account 2. The EPF will transfer 1/3 (33.33 percent) to Account 3 and 1/6 (16.67 percent) to Account 1 if the balance in your Account 2 is RM3,000 or more.

For instance, if you have RM30,000 in Account 2 (Sejahtera), the one-time transfer procedure will move RM10,000 to Account 3 (Fleksibel) and RM5,000 to Account 1 (Persaraan). The remaining 50% (RM15,000), will remain in Account 2 (Sejahtera).

You can only transfer up to RM1,000 from Account 2 (Sejahtera) to Account 3 (Fleksibel) if you have less than RM3,000 in that account. The remaining amount will stay in Sejahtera's account, Account 2. 

For instance, if your Account 2 has RM1,200 - you can only transfer RM1,000 to Account 3. If your Account 2 has RM500, you can only move RM500 to Account 3.

You can’t decide how much exactly to transfer between the accounts as the percentage is determined by the EPF. As clarified by the EPF, the dividend rate for Account 3 at the moment will follow Account 2 and Account 1. This means you will still receive the same dividends in Account 3 if you choose not to withdraw funds in Account 3.

EPF account 3 withdrawal takes how many days?

The FAQ states that it will take three to five business days for the one-time transfer to Account 3 to be credited. Only the period from May 12 to August 31, 2024, is available for the one-time transfer.

Members can withdraw funds from Account 3 with a minimum of RM50 

Members can take money out of Account 3 whenever they have at least RM50 in there.

This implies that you can choose to withdraw any amount between RM50 and RM5,000 if your Account 3 has RM5,000. You can request a withdrawal through the KWSP i-Akaun app, and the funds will be credited to your bank account—which needs to be registered under your name.

It is stated that EPF members can typically complete identity verification online and withdraw funds without the need for physical presence. It depends upon prior withdrawal activity, though, and the maximum withdrawal amount is RM30,000.

The payment will be made within 7 working days of the application being approved, according to the FAQ.

An application for Akaun Fleksibel - EPF Account 3 Withdrawal can be found here, step-by-step:

You should only use the official EPF platforms to complete the one-time transfer or withdrawal application; beware of scammers. The EPF has not authorized any third-party apps or services for these uses. 
You can visit the Account Restructuring page of EPF to find out more.

Would You Use the EPF Account 3 Withdrawal to Buy a Car? 

It's not always easy to decide whether to use the funds that you have saved in your EPF to purchase a car. Although many Malaysians may naturally want to keep their money invested for retirement or withdraw it for instant relief, purchasing a car can be a debated choice. 

There are differing views on this: 

Do Not Touch EPF Savings: Many people think that in order to ensure future financial stability, the money should stay untouched. 

Invest in an Income-Generating Vehicle: According to some, allocating the funds for the purchase of a car can yield income (e.g. g. , ride-hailing or a food van), might be a wise purchase. 

Considerations

1. Investment Potential: 

• Pros: If the car is used to make money, it can be a wise investment that helps those in need by bringing in necessary income.
• Cons: A car is an asset that depreciates over time and needs frequent maintenance, which can be expensive. 

2. Age Factor: 

• Younger People (e.g. g. around the age of thirty): Younger individuals have more time to replenish their savings. 
• Elderly People (e.g. g. , getting close to 55 years old): Senior citizens might want to hold onto their retirement funds. 

Personal Circumstances and Judgment: In the end, the choice is yours, and only you are fully aware of your circumstances. Use sound judgment in light of your needs and financial circumstances.

Buying a Car with Carlist

If you decide to purchase a car, discover the range of exceptional car choices of new & used cars for sale at Malaysia's No. 1 car site, Carlist.my. Enjoy our various & exclusive advantages like free warranties up to 5 years* on Carlist Qualified cars, and thorough pre-inspected vehicles by a professional entity with detailed reports. There are also cars that are entitled to an extended warranty to offer you a peace-of-mind purchase.
With the largest car listings, trust in our vetted trusted dealers with a proven track record certified by Carlist.my - (indicated by the "Trusted Dealer" badge).
Experience automotive excellence - buy and sell your second-hand car effortlessly.

Plus, amplify your selling potential by advertising with us at carlist.my/ourservices. Explore now!