The Department of Economic Affairs (DEA), Ministry of Finance has announced the quarterly interest rate for General Provident Fund (GPF) and other similar schemes. GPF is like a Public Provident Fund scheme but for Government employees only. There is no change in the interest rate offered on these schemes for the ongoing quarter.
The interest rate for the October-December 2022 quarter on GPF and other similar provident fund schemes would be 7.1%, according to DEA.
“It is announced for general information that during the year 2022-2023, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f. 1st October 2022 to 31st December 2022. This rate will be in force w.e.f. 1st October 2022,” the DEA said in an official resolution dated 3rd October 2022.
What are the other Provident Funds?
Other provident funds to which the 7.1% interest will apply include The Contributory Provident Fund (CPF), The All India Services Provident Fund (AISPF), The State Railway Provident Fund (SRPF), The General Provident Fund (Defence Services), The Indian Ordnance Department Provident Fund (IODPF), The Indian Ordnance Factories Workmen’s Provident Fund The Indian Naval Dockyard Workmen’s Provident Fund, The Defence Services Officers Provident Fund, The Armed Forces Personnel Provident Fund.
The interest rate for GPF and other similar provident funds was 7.1% for the July-September 2022 quarter as well.
What is GPF?
GPF is a type of Public Provident Fund (PPF) but for Government employees only. Government employees can contribute a certain part of their salary to the GPF account. The total savings made by the employee towards the GPF account is paid with interest at the time of retirement. Like PPF, the interest rate for GPF and other similar schemes for Government employees is also revised by the Government on a quarterly basis.
PPF interest rate unchanged
The rate of interest on the Public Provident Fund scheme for the October-December quarter has remained unchanged at 7.1% per annum compounded annually. Meanwhile, the Government has revised the interest rates of some small savings schemes like SCSS, KVP and Post Office Time Deposit of select tenors.