EPFO: Employees can get good news soon, know what is the plan of the government

Personal Finance: PF is the best for investment even after reducing the interest rate, more interest than many Saving Schemes

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new Delhi. Before Holi, the government has given a big blow to the employees, which is going to directly disappoint about six crore employed people of the country. A major decision has been taken after extensive deliberations in the two-day meeting of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO). While changing the interest rate on EPF deposits, it has been reduced from 8.5 to 8.1 percent.

Before the start of the meeting, it was expected that in this two-day meeting, major decisions could be taken on many proposals including the interest of Provident Fund (PF) for the current financial year. It was being said that in view of the current economic conditions, the CBT may decide to reduce or keep the interest rates stable in the current financial year. Despite this deduction, experts say that it is the best option for investment right now.

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So do not make distance from PF investment
Investment advisor Balwant Jain says that where the government invests your PF money, the returns have been reduced. That’s why the government has cut the interest rate on it. But, the interest rate of PF is still higher than the inflation rate and is attractive as compared to other savings schemes. He said that investors should not distance themselves from PF thinking that the interest rate on it has come down.

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Finance Ministry approval pending
The final decision on the interest rate fixed by the CBT is yet to be taken. After the recent decision of CBT, the interest rate information on EPF deposits for 2021-22 will be sent to the Finance Ministry for approval. This rate will be applicable only after approval from there. In March 2020, the EPFO ​​had decided to reduce the interest rate on provident fund deposits to 8.5 per cent in seven years for 2019-20, from 8.65 per cent in 2018-19.

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That’s why PF is attractive as compared to other schemes
Scheme Return Investment Period
EPF 8.1 percent 5 years
Sukanya Samriddhi 7.6 per cent 15 years
Senior Citizen Savings Scheme 7.4% 5 Years
PPF 7.1% 15 years
Kisan Vikas Patra 6.9 percent 124 months
NSC 6.8 percent 5 years
Post Office Monthly Scheme 6.6% 5 Years
Fixed Deposit 3.5-6.8 per cent 7 days to 10 years
National Pension Scheme 5-8% till 60 years of age

Tags: EPF deposits, Epfo, Interest Rates, Investment

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