Employee Provident Fund Organization (EPFO) Financial year soon Will announce the interest rate on PF for 2024-25. It is expected that this time interest rate Between 8% to 8.25% May be, which is likely to remain like last year. EPFO's Central Board of Trustees (CBT) will meet on 28 February 2025, in which it will be decided.
Now the question arises that Is the interest available on PF more beneficial than fixed deposits (FD)? Let us understand it in detail.
EPF vs FD: Where is more benefit?
| Parameter | EPF (Provident Fund) | FD (Fixed Deposit) |
|---|---|---|
| Interest rate | potential 8% – 8.25% | Different banks 6.5%-7.5% (0.5% more to senior citizens) |
| Tax on interest | Tax-free (keeping over 5 years) | Interest has to be taxed (if TDS deducted if more than 40,000) |
| Lock-in period | Until the job ends or retirement | From 7 days to 10 years, you can choose from your convenience |
| Stability in returns | Detected by government, guaranteed returns | Depending on the policies of bank and RBI, interest rate can change |
| Hazard | Extremely safe due to government guarantee | Light risk of bank default |
| Liquidity | Some conditions applied on extracting in the middle | Penalty can be imposed on premature breaking |
How is interest fixed on EPF?
Interest rate on EPF The government depends on the income and market condition of the EPFO. The process of fixing the interest rate is as follows:
- EPFO proposes interest rate.
- The Central Board of Trustees (CBT) approves it.
- The Finance Ministry approves it.
- EPF accounts have interest credit.
Near EPFO More than 6.5 million subscribers Are, and its by the end of 2024 Total order book 1.60 lakh crore rupees Was
After market correction, the opportunity to earn up to 80 percent in BHEL. The company gets a big order of 67000 crores.
4 government stocks that will give a profit of up to 76 percent. There are many people who rain dividend. The opportunity came after correction.
EPF Vs FD: Whom to choose?
If EPF is a better option:
- Long term saving Have to do (for retirement planning).
- Need tax-free interest (On investing more than 5 years).
- Do not want to take risks And want stable returns.
If fd is good:
- Short term saving Have to do (for 1-5 years).
- There may be a need to withdraw money at any time.
- Low risk and fixed income is required.
How to check your EPF balance?
1⃣ From the app:
- Download and register the Umang app.
- Select EPFO option and see PF balance.
2⃣ From EPFO portal:
- EPFO website Go to
- Go to “Employee Section” and open “Member Passbook”.
- Check the balance by adding UAN and password.
3⃣ By giving missed calls:
- From registered mobile 011-22901406 Give a missed call on.
- There should be Aadhaar, PAN and bank detail links from UAN.
4⃣ From SMS:
- 7738299899 SMS on: UAN EPFOHO ENG।
- If you want information in hindi EPFOHO UAN HIN Send
Where to invest?
If you want long-term saving, want to save tax and want guaranteed returns, then EPF is the best option. If you want flexibility and want to invest for a short time, FD may be a good option.
(Important: It is possible to change the interest rates of EPF, and the final decision will be taken only after the approval of the government. Decide according to your needs before investment.)
