03 Jan, 2019 1:37p.m.

High chances of EPFO hiking interest rates

Retirement fund manager Employees’ Provident Fund Organisation (EPFO) may raise interest rates from the current level of 8.55%, bringing cheer to millions of employees in the organized sector. If indeed EPFO does follow through, it will serve up another sop in poll-bound India, this time for the salaried employees. So far, farmers—through farm loan waivers—have been the beneficiaries, while the middle class has gained indirectly, with the recent reduction in goods and services tax (GST) rates on several consumer goods.

Though the annual internal review is yet to be concluded, three officials with knowledge of the development said there was a good chance the EPF rate would be hiked. At the least, it will be retained at the existing level; given the steep fall in inflation, the real rates of interest accruing to the salaried classes have spiked.

In 2017-18, EPF savings earned 8.55% interest, which was at a five-year low. However, in 2018-19, even an unchanged interest rate will make it one of the most rewarding savings schemes. In 2018, the average interest rate of the Public Provident Fund (PPF) and the National Savings Certificate (NSC) was 7.7%. The leading ultra short-term debt funds, which invest in securities with maturities between three and six months, returned an average of 7.78%,

Latest in Important News
Latest in Other News Sections
Budget 2019 expectations : IT exemption limit likely to be hiked to Rs 5 lakh 🕑 17 Jan,19 9:29p.m.
Researchers develop plants that can remove cancer-causing pollutants 🕑 27 Dec,18 12:59p.m.
6 months of aerobic exercise reverses brain ageing by 9 years 🕑 24 Dec,18 2:31p.m.
All you need to know about NPS changed withdrawal norms 🕑 24 Dec,18 11:47a.m.
Scientists succeed in destroying HIV-infected cells 🕑 22 Dec,18 10:22p.m.
Johnson and Johnson talcum powder samples seized across country for testing 🕑 19 Dec,18 1:26p.m.
Govt. for levy on petrol and diesel cars to push to push e-vehicles 🕑 19 Dec,18 1:20p.m.
Tax changes in 2018 that will affect you 🕑 19 Dec,18 1:09p.m.
Google maps now shows auto-rickshaw routes with estimated fares 🕑 19 Dec,18 11:53a.m.
WhatsApp picture-in-picture mode now available for all Android users 🕑 19 Dec,18 11:07a.m.