The interest rate of 8.25 per cent on EPF is now higher as compared to small savings schemes like PPF, Sukanya Samriddhi Yojana and post office deposits, which offer up to 8.2 per cent annually
In a notification, the Union finance ministry said that the interest rates of most schemes were at the same level, with some changes in the Sukanya Samriddhi Scheme and 3-year time deposit scheme.
The government has kept interest rates on small savings schemes unchanged, except for 3-year time deposits on which the rate has been hiked by 10 basis points
Interest rates on small savings schemes, while set by the government, are linked to market yields on government securities at a spread of 0-100 basis points over the yield of these securities of similar maturity.