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Government has reduced the interest rate of PF, know how much return is being received in the rest of the scheme

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EPFO Members: Good News! PF account holders will get free benefits up to Rs 7 lakh, know here full details

Despite the cut, the PF rate is still higher than all the small saving schemes. To know this, you can see the rates of different schemes. Returns up to 7.6 percent are being given on small savings schemes.


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 gives its approval, 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 at present. 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 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 run for daughters.

The Monthly Income Account Scheme which runs 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 the capital deposited in it is completely safe with bumper returns. Same is the case with PPF or Monthly Income Scheme. Actually, 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.

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