EPFO Latest News: The Employees’ Provident Fund Organization ( EPFO ) has proposed to reduce the interest rate on PF to 8.1 percent. Right now this rate is 8.5%.
If the Finance Ministry approves this, then there will be a big setback for the employees before Holi. In the midst of inflation, the PF rate event will be a big loss. If this happens, then this will be the lowest rate of PF in the last 40 years. The Finance Ministry has to put the final seal on the decision of EPFO, after which this rate will come into effect. However, despite the cut, the PF rate is still higher than all the savings schemes . To know this, you can see the rates of different schemes.
For small savings schemes, the government announces interest rates every quarter. Earlier it was announced on 31 December 2021, whose period continues till 31 March. There is no such savings scheme which gives more returns than PF right now. There is a difference between investing in the stock market and mutual funds. Talking about the most talked about Public Provident Fund or PPF, right now the general depositor is getting 7.1 percent interest, while senior citizens are getting the interest at the rate of 7.4 percent. A little more than this, 7.6 percent interest is being given in Sukanya Samriddhi, a scheme for daughters.
Monthly Income Account Scheme running for 5 years gives interest at the rate of 6.6 percent to the customers. 5 year NSC pays 6.8% interest. NSC also has a large number of customers as it keeps the accumulated capital completely safe with bumper returns. Same is the case with PPF or Monthly Income Scheme. In fact, the government changes the interest rates of small savings schemes on the basis of earnings from government securities. If the government benefits from securities, then the rates of savings schemes are also increased.
Benefits of Savings Schemes
Long Term Benefits: By investing in savings schemes, one can overcome the stress of his long-term goals like retirement planning, children’s education and children’s wedding expenses.
Different Savings Schemes: The number of savings schemes available at present is huge. These plans cater to the needs of different sections. For example, Pradhan Mantri Jan Dhan Yojana is designed to help people below the poverty line and Sukanya Samriddhi Yojana helps a girl child financially.
Hassle-free: These schemes are very easy to operate and invest and most of the contributions made towards the schemes can be done online.
Security of money: Since the schemes launched by the Government of India, the money deposited in the schemes and its returns are completely safe.
