The Employees’ Provident Fund Organisation (EPFO) has declared a rate of 8.55% for the financial year 2017-18. This is lower than the 8.65% declared in the previous financial year and is, in fact, the lowest rate among the past five years. However, it is higher than corresponding FD and PPF rates.
The table below gives you a history of the EPF rate declared for different years.
|FY||EPF Rate (%)|
8.55% is higher than the FD rates in major banks such as HDFC and SBI which range from 6.4-7%. It is also higher than the current quarter’s Public Provident Fund (PPF) rate of 7.6%. A balanced NPS portfolio, on the other hand, could have fetched you higher returns over the past one year, we show here. It is important to note that NPS returns are market-linked and not guaranteed. The interest on EPF is tax-free.