EPFO was trying hard to get approval for 8.65%. Moreover, Finance Ministry allowed for 8.65% as well. Therefore, interest rate on Employees’ Provident Fund will be 8.65%. This rate of interest is applicable for 2016-17 financial year. Now you can Check EPF balance by UAN number.
In addition, as per reports, more than four crore EPFO members will benefit. Because Government and CBT decide EPF interest rates every year. CBT is short form for Central Board of Trustees. But 8.65% is applicable for all EPFO members only for this year.
EPF as investment option
Experts say that EPF is best investment option. On one hand it is easy to invest. Whereas on other hand, it is not optional. Furthermore, provident fund is employee’s retirement savings. Thus, it will help them in future only.
Method to invest in EPF account
You and your employer contribute to EPF. In addition, Government fixes amount to save in PF account. Therefore, every month there is some amount in form of contribution. Plus, you can check UAN login EPFO member portal.
At EPF portal you will get many services. But if you are employer then you must go to EPF UAN employer portal.
Thus, when you invest small amounts. They will combine and benefit you after your retirement. Hence, it is better that you take proper decision. Moreover, to help you here. We gave detailed information on which is better and why. In this way you will know about EPF vs fixed deposits.
What is fixed deposit?
FD is short form for fixed deposit. Additionally, as name says, it is for short term. Generally fixed deposit is for 5 years. It is also lock in of five years. Hence, due to this you have to wait for five years. But EPF is not like that.
EPF vs fixed deposits
Apart from that there is one disadvantage of FDs. And it is that interest income on FDs is taxable. Additionally, this tax is according to income tax slabs. Therefore, interest earned is lost. At the end, 7 to 9% initial returns are less after tax.
Besides, you can withdraw from EPF easily. Or you may even move funds from EPF to NPS. While there is no such option for fixed deposits. Even withdrawal funds from EPF is tax free. As end result, it is plus point.
Second, rate of interest is set every financial year. This only benefits people. But you do not have to worry a lot. As rate of interest is around 8% only. So, you will have idea of how much you will get at end. Plus, it will be a safe retirement fund for you only.
In this way it will help you. However, it is better that you look at different things. Because this helps you to take correct decision. EPF transfer and withdrawal process UAN will help you with EPF withdrawal process also.