2016
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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7.8 %, 8.7 %
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8.1 %, 8.7 %
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7.6 %, 9.2 %
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8.1 %, 8.2 %
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Detailed explanation-1: -Employees’ Provident Fund interest rate slashed from 8.5% to 8.1%
Detailed explanation-2: -The Labour Ministry has recently proposed to slash the interest rate by 0.4% to 8.1% from 8.5% earlier for the FY 2021-22. The decrease in interest rate will be a big blow to salaried individuals. This is because calculations related to retirement corpus is dependent on EPF contributions and its interest rate.
Detailed explanation-3: -What is a PPF account? 7.1% per annum. Rs 1.5 lakh per annum. Public Provident Fund (PPF) scheme is a long-term investment option that offers an attractive rate of interest and returns on the amount invested.
Detailed explanation-4: -Traditionally, PPF interest rates are kept higher than the prevalent Fixed Deposit rates offered by Banks, to encourage savings among Indian households for their long-term future. The current interest rate for Q4 (January-March) FY 2022-23 for PPF accounts has been fixed at 7.1%.
Detailed explanation-5: -For the January-March 2023 quarter, the government increased the interest rates on a few small savings schemes by 20 bps to 110 bps. However, interest rates of the Public Provident Fund have not been changed for this quarter as well.