EPF vs PPF, other small savings schemes: Check latest interest rates
India Today
The EPFO, earlier this month, decided to lower the interest rate to a four-decade low of 8.1 per cent for the financial year of 2021-22. The rate was 8.5 per cent for FY 2020-21.
PF interest rate paid on employees' provident fund (EPF) deposits has been proposed to be cut to a over four-decade low of 8.1 per cent. Finance Minister Nirmala Sitharaman has defended the proposal made by the Central Board of Trustees of Employees' Provident Fund Organization (EPFO), saying the rate is dictated by today's realities where interest rates on other small savings instruments are even lower.
The Finance Ministry is the nodal authority for approving the recommendation of the EPFO central board.
"EPFO has a central board which is the one which takes the call on what rate has to be given...and they have not changed it for quite some time. They have changed it now...to 8.1 per cent," the Finance Minister said.
The minister further added that it is a decision taken by the EPFO Central Board which has a wide spectrum of representatives on it.
The EPFO, earlier this month, decided to lower the interest rate to a four-decade low of 8.1 per cent for the financial year of 2021-22. The rate was 8.5 per cent for FY 2020-21.
FM Sitharaman cited the comparative prevailing interest rates of other schemes saying Sukanya Samriddhi Yojana offers 7.6 per cent, Senior Citizen saving scheme (7.4 per cent) and PPF (7.1 per cent), while SBI's 5-10 year fixed deposits attracted 5.50 per cent interest rates.
"With all this, the EPFO has taken a call to give it at 8.1 per cent (interest rate)," she said.
