Even after 10 bps cut, EPF is still the best small savings option

At 8.55 per cent interest rate, the EPFO will retain a surplus of Rs 8.5 billion

Retirement fund manager, the Employees’ Provident Fund Organisation (EPFO), cut the interest rate for 2017-2018 by 10 basis points – from 8.65 per cent to 8.55 per cent – on Wednesday. This is a five-year low rate from EPFO. 

“Looking at the present scenario and after much deliberation we have decided to keep rate of interest at 8.55 per cent. We are keeping adequate surplus. We hope the finance ministry approves it,” Santosh Kumar Gangwar, Labour and Employment Minister, said, after chairing the 220th central board of trustees meeting of the EPFO here on Wednesday. In 2016-17, EPFO subscribers received