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EPF vs Bank FD vs PPF: Here`s what you need to choose
The interest rate on the Public Provident Fund (PPF) will remain at 7.10 percent for the final quarter of FY 2021-22.
Highlights
- The interest rate on the Public Provident Fund (PPF) will remain at 7.10 percent for the final quarter of FY 2021-22.
- The Senior Citizens Savings Scheme (SCSS) will earn 7.40 percent, while post office time deposits will earn 5.5 to 6.7 percent.
- Sukanya Samriddhi Yojana pays an annual interest rate of 7.6%.
New Delhi: For many long-term investors, deciding between EPF, PPF, and bank FDs has always been a difficult task. The Employees' Provident Fund Organisation (EPFO) recently reduced the PF interest rate from 8.5 percent in 2020-21 and 2019-20 to 8.1 percent in 2021-22, the lowest rate in more than four decades.
While the Centre has yet to announce a new return rate for small savings schemes such as PPF and SCSS Sukanya Samriddhi Yojana, interest rates on these and other post office programmes remained unchanged in the previous quarter.
The interest rate on the Public Provident Fund (PPF) will remain at 7.10 percent for the final quarter of FY 2021-22. The Senior Citizens Savings Scheme (SCSS) will earn 7.40 percent, while post office time deposits will earn 5.5 to 6.7 percent. Sukanya Samriddhi Yojana pays an annual interest rate of 7.6%.
The interest rates are valid from January 1, 2021 through March 31, 2022.
Bank FD Interest rates
SBI FD interest rates
SBI has kept the interest rate on deposits less than Rs 2 crore and FDs with a term of 2 to 3 years at 5.20 percent, and 5.45 percent for those with a term of 3 to 5 years. Meanwhile, from February 15, 2022, the interest rate on 5-year and 10-year fixed deposits will be 5.50 percent.
HDFC Bank FD interest rates
Interest rates on FDs worth less than Rs 2 crore have been raised by 5-10 basis points by HDFC Bank. The bank pays 5% interest on one-year fixed-rate deposits and 5.45% interest on three- to five-year fixed-rate deposits. These rates will be in effect starting February 14, 2022.
Interest rate comparison
EPF - 8.10 per cent
PPF - 7.10 per cent
HDFC Bank FD - 5.45-5.60 per cent
SBI FD (3-5 years) - 5.45-5.50 per cent
POTD(5 years) - 6.70 per cent
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