EPF Low Interest Rates on savings schemes have spoiled the remote economy of small investors. All the 11 small savings schemes, including PPF and KVP, have reduced the interest rates on saving of those who saved their savings.
These days, about 4.5 crore employees of the Employees Provident Fund Organization (EPFO) are worried about interest rates on Employees Provident Fund (EPF). It is reported that the EPFO can cut the interest rate for the year 2017-18 on the provident fund deposits. In the year 2016-17, the EPFO had given 8.65 percent interest.
EPF Low Interest Rates – Why EPF Reduce Interest Rate 2017-18
The reason for reducing the interest rate on EPF in the year 2017-18 is the plan to put lower income on the bonds and the EPF investment directly into accounts of the shareholder members. The EPFO members of the labour organizations are urged by the government not to reduce the interest rate on EPF in the year 2017-18.
Of course, the demand for the interest of 8.65 percent on the EPF is justified on many grounds. In the era of globalization, the facilities of the employees of multinational companies are increasing rapidly, but despite the provisions of protecting workers and workers from social security, disease and poverty in the Indian Constitution, they are not getting such benefits.
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A person gives his services to an organization in the maximum working years of life and during this time he deposits some part of his earnings to the EPF so that he can get security and peace in life after retirement. But, in the last few years, due to low-interest rates on other savings schemes, including provident fund, the remote financial management of small investors seems to be scattering.
Public Provident Fund (PPF) & Kisan Vikas Patra
It is notable that the reduction in the interest rates of all the 11 small savings schemes, including the Public Provident Fund (PPF) and the Kisan Vikas Patra, have raised the income-related problems of those who saved their savings.
Although the government’s point is right that the country needs to grow in the direction of low-interest rates to make it more competitive rather than sluggish. But, it is also certain that such decisions will also reduce the amount collected in the form of small savings. With the help of small savings, life will spread to anyone’s marriage, social customs, children’s education, and retirement dream of later life.