Saturday, July 4, 2009


The Employee Provident Fund Organisation has decided to give an interest of 8.5% on the deposits made in EPF scheme for the current financial year as well. This interest rate of 8.5 % is same as the one applicable last year as well. With inflation and deposit rates up for most of the last year , there were expectations of an increase in this rate for this year atleast. But, with the inflation down to negative territory and deposits rates heading southwards, this expectation was tempered a bit in last few weeks and as such the decision to keep the rate unchanged is a no surprise really.

The EPF interest rate has come down from the highs of 12 % earlier to 8.5% now. There were talks of bringing this even further down to 8% level last year. But, with the new government's focus on "AAM AADMI" and inclusive growth , the chances of these rates going down is remote.

This will benefit the 4.2 crore depositors who have parked their money with the EPF. This makes it one of the best available debt funds for anyone to invest. The positive tax regime of EEE applicable for EPF is another plus.

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