Nearly 8.7 crore employees are in for some good news with the government likely to declare an 8.9 per cent returns on their provident fund savings for 2015-16, the highest rate in five years.
Highest Interest Ever
The Employees Provident Fund Organisation (EPFO) board is expected to meet in early February to recommend an 8.9 per cent returns on employees’ provident fund savings. If approved, the EPF would deliver better returns than most saving alternatives, including small savings schemes and commercial bank deposits.
While Public Provident Fund (PPF) offers 8.7 per cent rate of return, post office deposits fetch interest rates in the range of 4 to 8.4 per cent. The interest rate on deposits in National Savings Certificates (NSC) is 8.5 to 8.8 per cent at present.
The recently launched Sukanya Samriddhi Account Scheme (savings scheme for the girl child) gives 9.2 per cent interest rate for 2015-16. EPF savings are exempt from income tax, making the returns even more attractive.
The Finance, Investment and Audit Committee (FIAC) of the EPFO will meet to consider the 8.9 per cent annual dividend proposed on PF savings.
Current Affairs: 13th January, 2016 Current Affairs Round up December, 2015.
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