EPF Interest Rate 2016-17 – Reduced from 8.8% to 8.65%

Want to know what is the latest EPF interest rate for financial year 2016-17? EPFO has reduced the EPF interest rate form existing 8.8% to 8.65% recently and this will be applicable for the current fiscal year 2015-16 and also continue on EPF deposit for FY 2016-17.

Why EPF Interest Rate Reduced?

If you have remembered, last time Fm Arun Jaitley has taken the same step and he had to reverted back the changes immediately due to public pressure. But this time the situation is completely different as due to demonetization people started understanding the fact that the interest rates for deposit schemes are going to get decreased.

But, from your retirement saving point of view this may not be a good news. As the EPF interest rates are getting down significantly in last couple for years. If you follow the EPF interest rate historical data then you will be able to understand how much the reduction has happening in actual.

Also Read  How To Open PPF Account in ICICI Bank

What is current EPF interest rate for this year?

As per the new changes, the current year and next financial year 2016-17, 8.65% interest rate will be applied on your EPF deposits.

EPF interest rates since 1952 – Compare historical rates

Financial Year Interest Rate
2016-17 8.65%
2015-2016 8.8%
2014-2015 8.75%
2013-2014 8.75%
2012-2013 8.5%
2011-2012 8.25%
2010-2011 9.5%
2009-2010 8.5%
2008-2009 8.5%
2007-2008 8.5%
2006-2007 8.5%
2005-2006 8.5%
2004-2005 9.5%
2003-2004 9.5%
2002-2003 9.5%
2001-2002 11.25%
2000-2001 11%
1999-2000 12%
1998-1999 12%
1997-1998 12%
1996-1997 12%
1995-1996 12%
1994-1995 12%
1993-1994 12%
1992-1993 12%
1991-1992 12%
1990-1991 12%
1989-1990 12%
1988-1989 11.8%
1987-1988 11.5%
1986-1987 11%
1985-1986 10.15%
1984-1985 9.9%
1983-1984 9.15%
1982-1983 8.75%
1981-1982 8.5%
1980-1981 8.25%
1979-1980 8.25%
1978-1979 8.25%
1977-1978 8%
1976-1977 7.5%
1975-1976 7%
1974-1975 6.5%
1973-1974 6%
1972-1973 6%
1971-1972 5.8%
1970-1971 5.7%
1969-1970 5.5%
1968-1969 5.25%
1967-1968 5%
1966-1967 4.75%
1965-1966 4.5%
1964-1965 4.25%
1963-1964 4%
1962-1963 3.75%
1961-1962 3.75%
1960-1961 3.75%
1959-1960 3.75%
1958-1959 3.75%
1957-1958 3.75%
1956-1957 3.5%
1955-1956 3.5%
1954-1955 3%
1953-1954 3%
1952-1953 3%
Also Read  When To Deposit in PPF Account To Get Maximum Interest

You can refer to the source of this data by visiting EPFO website itself. From this data it is clear that the interest rate of EPF deposits has been decreased significantly and the chances of getting more low is also possible in near future.

What is EPF alternative for retirement planning

You might be thinking in such a case how to plan for retirement as the invested money is going to get less interest in coming days. It is true that many people are depending on the EPF corpus to accumulate their retirement corpus and we have seen the sentiment when EPFO has reduced the interest rate by 1% last time.

Also Read  5 Tips To Get Maximum Benefits From a PPF Account

So, if you are looking for EPF alternative you have to switch to mutual fund investment through SIP way as through stock market investment only one can create wealth in long term. As per historical data, stock market has returned more than 14% for an investment more than 12 years. So, one can start investing in mutual funds or you can also explore national pension scheme to create retirement corpus.

EPF Interest Rate 2016-17 – Reduced from 8.8% to 8.65%
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