EPF Bonaza - Interest rates to be raised to 8.95%

EPFO has proposed to raise the interest rate on EPF deposits to 8.95 % for the current financial year 2015-16. The interest rate in the previous financial year was 8.75%.

The proposal is a bonaza to the working class, especially because it comes at a time when government is expected to lower the interest rates of many small saving schemes such as public provident fund, national savings certificate, etc. This rate increase will make EPF one of the best savings instrument far ahead of PPF, NSC and Fixed Deposits.

However please note that this proposal has to be approved by the finance ministry. Only after their approval, the interest is credited into the accounts of subscribers. The final decision on interest rate by finance ministry should come by April/May.