EPF continues to beat inflation even with interest rate at four-decade low

The scheme also offers better returns than other most other investment avenues

The Employees' Provident Fund Organisation (EPFO) may have disheartened nearly 65 million subscribers by slashing the interest rate for 2020-21 to a four-decade low of 8.1 per cent from 8.5 per cent in the previous year. But the return still beats the inflation rate. This was not the case in the fag end of the UPA regime, despite the interest rate being in the range of 8.5-8.75 per cent.

Every since, though the interest rate on EPF has been fluctuating, the retirement fund scheme has never given negative returns to its subscribers in real terms (where the returns are adjusted