The government has announced the interest rate on General Provident Fund and other similar funds for the April – June quarter of the current financial year. The rate of interest has been kept unchanged in Q1 2026-27, similar to what it was in Q4 FY 2025-26.

The Budget Division of the Department of Economic Affairs, under the Ministry of Finance, has recently issued the notification that the fund accumulation at the credit of subscribers of General Provident Fund (GPF) and other similar funds will carry an interest rate of 7.1 per cent for the period April to June 2026.

At the start of each quarter of the financial year, the government revises the interest rate on small savings schemes and then announces the rate on GPF and other schemes.

ALSO READ

Earlier, the interest rate for the post office small savings products, such as Public Provident Fund (PPF), NSC, etc., were kept constant for the first quarter of FY 2026-27, starting from 1st April, 2026 and ending on 30th June, 2026. Currently, the interest rate on PPF is 7.1 per cent per annum compounded annually.

ALSO READ

The GPF is a mandatory savings system for central and state government employees that ensures their financial security after retirement. This scheme is only open to government employees who work permanently for the central or state government.

Every month, employees deposit a fixed part of their salary (usually 6%) into their GPF account. The government also pays interest on the GPF, which is fixed quarterly.

The interest rate of 7.1 per cent for the period April to June 2026, effective 1 April 2026, will apply to all the following funds:

  1. The General Provident Fund (Central Services).
  2. The Contributory Provident Fund (India).
  3. The All India Services Provident Fund.
  4. The State Railway Provident Fund.
  5. The General Provident Fund (Defence Services).
  6. The Indian Ordnance Department Provident Fund.
  7. The Indian Ordnance Factories Workmen’s Provident Fund.
  8. The Indian Naval Dockyard Workmen’s Provident Fund.
  9. The Defence Services Officers Provident Fund.
  10. The Armed Forces Personnel Provident Fund

Disclaimer: This article is for informational purposes only and is based on publicly available information issued by the Ministry. The interpretation of rules and provisions may vary depending on specific employment terms, company policies and future regulatory updates. Readers are advised to consult qualified professionals or refer to official government notifications before making any financial or employment-related decisions.