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EPF Interest Rate Falls Again & This Time It Came Down To 8.55%
Interest rates of EPF (Employees’ Provident Fund) keep on falling. Two years back, EPFO (Employees’ Provident Fund Organizations) paid 8.8% on EPF balances. And now the Central Board of Trustees (CBT) of the EPFO is putting forward a reduction of interest rate on PF balances to 8.55% for 2017 – 18 as compared to 8.65% the year before.
In defiance of the falling rates of EPF, it still holds saving advantages over other retirement savings fund.
In respect to the matter, CEO and founder of Clearfunds.com said that
it is backed by Government of India, and secondly, while the rates may vary each year, they generally move around a small band. Importantly, EPF is tax – free during the period interest is earned as well as at the time of withdrawal”.
Benefits of Investing in EPF
EPF comes with a lot of advantages which are as follows:
- In EPF, interest earned on funds is tax – free
- Investing in EPF guarantees savings as one cannot withdraw from its account easily. And in retirement, that saved money can be used for financial security. Or the funds can also be used at the time of the emergencies in life
- If an employee is planning a long – term investment, this scheme is just for them
- In times of need, especially in certain cases such as marriage, medical, housing, education, EPF funds can provide an employee much needed liquidity
- EPF can also be transferred from one company to the other through UAN (Universal Account Number) if you changes your job
Difference Between EPF & PPF
EPF (Employees’ Provident Fund) and PPF (Public Provident Fund) are both long term investment schemes. However, both are different schemes which are as follows:
| EPF | PPF | |
| Lock – in – Period | There is no lock – in – period | The maturity period of PPF is after 15 years and one can extend up to 5 more years |
| Tax Implication | EPF qualifies under 80 C of Income Tax Act | PPF qualifies under U / s 80 C. However, on maturity there is no tax |
| Interest Rates | 8.65 % two years back. And new suggested interest rate is 8.55 % | The interest rate for now is 8.7 per cent |
| Loan Option | The account holders can avail loans only for conditions applied by the authority | Account holders can apply for loans up to 50 per cent of the balance of the 4th year from 6th year onwards |
| Withdrawal Facility | An individual having an amount can withdraw amount for personal needs providing necessary documents | Individuals cannot withdraw money till the completion of tenure |
Rate Comparisons Between EPF Vs Other Retirement Savings Scheme
| Instruments | Interest Rate of 2017 – 18 (in %)* |
| Savings Deposit (SD) | 4 |
| 5 Year Time Deposits (TD) | 7.4 |
| 5 Year Recurring Deposit (RD) | 7.1 |
| 5 Year Monthly Income Schemes (MIS) | 7.3 |
| 5 Year National Savings Certificate (NSC) | 7.6 |
| Public Provident Fund (PPF) Scheme | 7.6 |
| Employees Provident Fund | 8.55 |
*2017 – 18 Q4 Rates / as per latest announcement
HDFC Savings Account- Interest Rates, Features & Benefits
The HDFC Bank offers a wide range of savings account. These savings accounts have different unique features and privileges that can be availed in a quick and convenient manner. The savings account provides different banking facilities and services. The customers have the facility to compare and choose the best according to their convenience. Also, a Personal Relationship Manager also assists the customers at every step of the way.
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| HDFC Bank Credit Card | Click Here |
| HDFC Bank Credit Card Customer Care Number | Click Here |
| Check HDFC Bank Account Balance | Click Here |
| Check HDFC Bank Credit Card Balance | Click Here |
| Link Aadhaar Card With HDFC Bank Account | Click Here |
| Check HDFC Bank IFSC Code | Click Here |
Types of HDFC Savings Account
A savings account is called as a zero balance account which is opened as an operative account for the fixed deposits/investments for day to day transactions, remittances to India or for salary or payments, standing orders, and direct debits and savings.
Below are the types of the savings account schemes:
- Savings Max Account:- Through the auto-sweep out facility, higher interests can be earned on the funds that are lying idle.
- Regular Savings Account:- This account is meant for day to day banking requirements.
- Women Savings Account:- This savings account is specially designed for the woman and provides a complete banking solution and caters to the financial, lifestyle and investment needs.
- Kid’s Advantage Savings Account:- This account is meant for developing money management skills in the kids and to accumulate savings for your child.
- Senior Citizens Account:-This savings account is mainly designed for the senior citizens and it offers a wide range of benefits regarding the health issues, investment and day to day banking solutions.
- Family Savings Group Account:- This savings account is specially designed for the entire family with benefits of a single account.
- Basic Savings Bank Deposit Account:- This is a basic zero balance savings account. It provides free ATM/Debit Card which meets all the banking requirements.
- Institutional Savings Account:- This is a zero balance savings account which is made available to the Trusts, Societies, Associations, Clubs, NGOs and much more.
- BSBDA Small Account:- This savings account is a zero balance savings account which provides a free ATM/Debit Card and completes all the banking requirements.
- Multiple Account Access:- One View is a unique feature provided by HDFC that allows viewing a multiple number of banks accounts with different banks centrally. The banks that participate in this platform are:
- Citibank
- HSBC Bank
- ICICI Bank
- Standard Chartered
Now you don’t have to log in to every bank account individually to access net banking. You can set up to 5 different bank account under One View. You just need to remember the password so as to access all your accounts along with the HDFC Bank Account. This platform is free of charge, which is one great thing. For availing this feature, you need to be a net banking customer of HDFC Bank.
Interest Rates on HDFC Bank Savings Account
The Savings Account offers the customers with wide variety of facility such as mobile banking, phone banking, and net banking etc. The savings account range from the regular savings accounts to premium saving options that enables substantial savings.
|
Particulars |
Rate of Interest |
|
Saving Deposits Balance Below Rs 50 Lakhs |
3.50% per annum |
|
Saving Deposits Balance Above Rs 50 Lakhs |
4.00% per annum |
Features of One View
Through One View, you can view all the online bank accounts of HDFC Bank, ICICI Bank, Citibank, Standard Chartered Bank and HSBC Bank. You can view the following details through One View Platform:
-
Current or Savings Balance Account
-
Fixed Deposit Summary.
-
Current or Savings Account Transaction History
-
Citibank Credit Card Balance
-
Citibank Credit Card Transaction History
-
HDFC Demat Profile
-
HDFC Demat Holding
-
HDFC Demat Status
Security Feature of One View
The One View Platform uses the Firewall. To transmit information, One View uses 128- bit Secure Socket Layer (SSL) encryption technology. The platform has designed a timeout facility so that the other users cannot view your profile for details. You can be assured that your account is safe and secure. Through this platform, you cannot perform transactions but you can view your account details.
Basic Savings Bank Deposit Account (Farmers)
This account is exclusively designed for the farmers and provide them a financial sector by providing a zero balance savings account with no initial deposit requirements. The Account Holders can benefit free from the IVR Phone Banking Facility. The Bank issues free International Debit Cards to the account holders to facilitate cashless and convenient transactions and cash withdrawals. The account can be operated through net banking, mobile banking, phone banking and branch banking.
Features Offered
-
No initial deposits are required while opening a bank account.
-
No average monthly balance required.
-
There are no charges levied for the non- maintenance of the account.
-
There are no charges levied for activating the account.
-
Free International Debit Card
-
First Cheque Book is free
-
Cash Deposit can be made free of charge with no limits.
-
Cash Withdrawals are limited to 4 free per month and subsequently at Rs 50 plus tax per transaction.
Eligibility Criteria for opening a Basic Savings Deposit Bank Account
The eligibility criteria to open a basic savings bank deposit account are:
-
The Individuals should be residents of India.
-
The Individuals must be an agriculturist or a farmer having their own agricultural land or must have income from agricultural resources.
-
The account can be opened solely or jointly.
Documents Required for Basic Savings Deposit Bank Account
The Documents that are required for opening a Basic Savings Bank Account are:
-
Recent Passport Size Photograph
-
ID Proof as per the list of KYC Documents
-
Address proof as per the list of the KYC Documents
-
Basic Savings Bank Deposit Account Customer Declaration.
Smart Buy
Smart Buy is a special platform introduced by HDFC Bank which allows the customers to compare prices across the different websites and get the best deals on shopping and flight tickets.
Some of the brands that hold a partnership with this feature are Amazon, Flipkart Snap deal, OYO, Cleartrip, eBay, and Booking.com.
Smart Buy offers the following facilities:
-
Flight Bookings
-
Hotel Bookings
-
Mobile Recharges
Not only this, the customers can also shop from the SmartBuy Website by viewing the best prices. By selecting the desired product, they can be directed to the merchant’s website. Based on your city, you can find the best deals and offers on the following:
-
Electronics
-
Smartphones
-
Food and Dining
-
Travel and
-
Beauty and Health
The SmartBuy provides special offers and different payment facilities for the purchases through the Smart Buy. Customers can avail discounts and offer on the following payment methods:
-
Credit Cards
-
Debit Cards
-
Net Banking and
-
Prepaid Cards
SmartBuy provides the customers the best deals online for a product by comparing the prices from different websites. Therefore Shop wisely on HDFC’s SmartBuy Website.
Features and Benefits of HDFC’s Savings Account
-
The HDFC Savings Account Scheme provides different features to meet the requirements of different customers in a unique manner.
-
Offers a complete banking solution that allows the customer and his/her family to benefit from one single account.
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With just one savings account, a customer can enjoy different benefits such as Health, Investments and everyday banking solutions.
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Provides Widest ATM Networks across the country to meet all your banking needs.
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Free Net Banking, Mobile Banking, and Phone Banking.
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E-mail Account Statements are sent out on a Monthly Basis.
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“Money-Maximizer” or Sweep out Facility is also provided on some of the savings accounts so that surplus funds can be put into high earning fixed deposit at the threshold of Rs 1, 25, 000.
Documents Required For HDFC’s Savings Account
For opening a Savings Account, following documents are required:
-
Identity Proof
-
Address Proof
-
Latest Passport Size Photographs
-
Self-Attested Copies and Originals for Verification.
Eligibility Criteria for opening a Savings Account
-
Accounts can be opened by an individual singly or jointly, Minors aged above 10 or above and minors under natural/legal guardianship.
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Resident Individuals (Sole/Individual)
-
Hindu Undivided Families
-
Foreign National Residing in India. If you are a Foreign National Residing in India then you need to attach a QA 22 Form stating the sources of credit and a copy of your residence permit.
Minimum Balance Required With HDFC Bank Savings Account
|
Savings Account Scheme |
Minimum Balance Requirement |
|
Savings Max Account |
Rs 25, 000 |
|
Regular Savings Account |
Rs 10, 000 (Metro/ Urban Branches) Rs 5, 000 (Semi-Urban) |
|
Women’s Savings Account |
Rs 10, 000 (Metro/Urban Branches) Rs 5000 (Semi-Urban/ Rural Branches) |
|
Kids Advantage Account |
Rs 5000 |
|
Senior Citizens Account |
Rs 5000 |
|
Family Savings Group Account |
Combined Average Monthly Balance in all accounts grouped should be Rs 40, 000 |
|
Basic Savings Bank Deposit Account |
– |
|
Institutional Savings Account |
– |
|
BSBDA Small Account |
– |
Fee and Charges
|
Savings Account Scheme |
Standing Instructions |
Passbook Issuance |
Debit Card (Annual Fee) |
|
Savings Max Account |
Rs 25+ remittance fee |
Free |
Free |
|
Regular Savings Account |
Rs 25+ remittance fee |
Free |
Rs 150+ Taxes |
|
Women’s Savings Account |
Rs 25+ remittance fee |
Free |
Rs 150+ Taxes |
|
Kids Advantage Account |
Rs 25+ remittance fee |
Free |
Free |
|
Senior Citizens Account |
Rs 25+ remittance fee |
Free |
Free for life time for 1st Applicant. Rs 100+ Taxes for Other Applicants |
|
Family Savings Group Account |
Rs 25+ remittance fee |
Free |
Free for all the applicants |
|
Basic Savings Bank Deposit Account |
Rs 25+ remittance fee |
Free |
Rs 100+ Taxes |
|
Institutional Savings Account |
Rs 25+ remittance fee |
Free |
– |
|
BSBDA Small Account |
Rs 25+ remittance fee |
Free |
Rs 100+ Taxes |