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For those looking for safe and high-yield investment schemes, options like EPF, Bank FD, PPF, SCSS, and SSY are among the most discussed. Based on current interest rates, EPF (Employees' Provident Fund) is among the most competitive and high-yielding schemes for employees.

The government-owned retirement fund body, EPFO, has fixed the interest rate on EPF at 8.25% for the financial year 2025-26. This rate has been maintained for the third consecutive year. The government states that despite global economic uncertainties, EPFO ​​has maintained strong financial discipline and ensured stable and competitive returns.

How much interest is earned under different schemes?
Investment Options Current Interest Rates (Approximate) Highlights
EPF (Employee Provident Fund) 8.25% Stable and high returns, annual compounding, employer contribution also available

SCSS (Senior Citizen Savings Scheme) 8.20% Attractive for retirees, only for senior citizens

SSY (Sukanya Samriddhi Yojana) 8.20% Scheme for daughter's education and marriage, long lock-in

NSC (National Savings Certificate) 7.70% Fixed term, interest taxable on maturity
PPF (Public Provident Fund) 7.10% 15-year lock-in, maturity tax-free
Bank FD (Fixed Deposit) 6.5% – 7.5% Rates vary depending on the bank and tenure, interest is taxable

Why does EPF offer more benefits?
EPF's 8.25% annual interest rate is currently higher than most bank FDs and PPFs. Additionally, SCSS and SSY rates are around 8.2%, but these schemes have eligibility and purpose restrictions.

The key feature of EPF is that both the employee and the employer contribute, increasing the total savings and returns over the long term. Furthermore, the interest earned on the amount deposited until retirement is tax-free up to a certain limit, further improving the actual return.

What are the implications for investors?
Experts believe that following the recent RBI rate cuts, interest rates on many bank FDs have decreased, while EPF rates have remained stable. Consequently, EPF remains a strong, long-term, safe investment option for salaried employees.

However, it's important to consider your goals, time horizon, and tax status when making investment decisions.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.