Wednesday, August 3, 2011

EPF A/C 2 Withdrawal - Part 1

Wow! I've left this blog un-touched for a long time. Well, I have some exciting topics to post, therefore I am returning to blogsphere. No point to blog about "mou-liu" or non-sensual stuff right ;p

One of the topics that I want to post is about our EPF A/c withdrawal.

As a working employee in Malaysia, your employer would need to contribute to the Employees Provident Fund (EPF) or in Malaysia, Kumpulan Wang Simpanan Pekerja (KWSP). Here is their website

When your employer contributes for you, your money will be split to 3 accounts, namely Account 1, Account 2 and Account 3. By right, as the fund says, this money is meant for your retirement. However in today's lifestyle, money is never sufficient. Raising debt is another concern.

Once your money is in EPF, it will automatically split to the 3 accounts.

For account 1, you cant withdraw the money until you are at retirement age. However exception is given for "investment". You can withdraw to a certain percentage for buying Unit Trust OR trade in our local stock market. Do note that whatever profit you make from the Unit Trust or Stock Market, you cannot withdraw. It will automatically plough back to your EPF Account 1.

For account 2, you can withdraw the money to buy your first house or 2nd house** or education..and many more.

For account 3, its for medical assistance.

This is a very basic explanation of our EPF System. Of course, to know more, you should always refer back to the EPF officers or their website.

Stay tune for Part 2 when I discussed more about my personal experience in withdrawing A/c 2 for my 2 houses.


  1. I've experienced withdrawing from Account 2 for house and Account 3 for medical. No issues with them so far and I have to say their are quite efficient if all the things submitted are intact.

  2. Rachel Joy with an "E" =)Thanks for dropping by cool bean mommas!Wow that seems confusing...I'd like mine all in one account please.

  3. ooh...i didn't know that income earned fr unit trust will be deposited back to epf, tks for sharing i learnt a new thing :D

    pls continue part 2 .... fai tit, torcheh!!