EPF Tips: Will your EPF deposit make you earn money? You will get the right answer here..

The government has taken several steps to modernize the services offered by the Employees Provident Fund Organisation (EPFO) to improve the customer experience while using the retirement fund body's portal. Meanwhile, the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, will meet on February 28 to finalize the interest rate on provident fund deposits for the current financial year (2024-25).

The CBT meets every quarter.

The CBT meets every quarter. The CBT, constituted under the leadership of the Union Minister of Labor and Employment, also includes representatives of employees' unions, trade unions, and government officials of the central and state governments. Let us tell you that the EPFO ​​​​currently offers an interest rate of 8.25 percent on provident fund deposits, reports suggest that the retirement fund body may continue with the same rate for the current financial year as well. This rate has to be first approved by the CBT on February 28 before it is confirmed by the Finance Ministry. EPFO Rate Trends

The current rate (for FY 2023-24) of 8.25% is the highest interest rate offered by the EPFO ​​in the last three years. The interest rate for FY 2022-23 was 8.15%. The lowest rate in recent times was 8.10% in 2021-22, the lowest since 1977-78, when it was 8%. Over the past decade, the EPFO ​​kept changing interest rates, with the highest being 9.50% in 2010-11. Between 2019 and 2021, the rates remained stable at 8.50%.

Is the government considering offering fixed returns on EPF deposits?

The central government is considering offering a fixed interest rate on EPF deposits to ensure stability in returns for crores of EPFO ​​members. The government is currently reportedly considering a proposal to create an Interest Stabilization Reserve Fund. Which will help keep the interest rate stable.

How does the government invest in EPF deposits?

The EPFO ​​regularly invests in equity markets through exchange-traded funds (ETFs), which mimic the BSE-Sensex and NSE Nifty-50 indices. Let us tell you that EPFO ​​has recently announced EPFO ​​3.0. This is a major upgrade of the EPFO ​​​​system, which will be implemented from June 1 this year. EPFO ​​​​3.0 will ensure some major changes in the way services are provided to more than crores of EPF members.

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