What is General Provident Fund: The Center has announced the General Provident Fund (GPF) interest rate for the October-December 2023 quarter. The Finance Ministry has not changed interest rates for the 16th consecutive quarter.
The Finance Ministry has announced the interest rates applicable in the December quarter for General Provident Fund and other mixed funds. This interest rate will be applicable from the month of July. The Finance Ministry reviews interest rates every quarter on the basis of inflation and implements new rates.
What will be the interest rate in December quarter?
The Department of Economic Affairs (DEA) of the Finance Ministry issued a circular on October 4, 2023, disclosing the interest rates applicable to General Provident Fund i.e. GPF and other mixed funds. According to the circular, during the year 2023-2024, interest at the rate of 7.1 percent will be applicable on General Provident Fund and other similar funds from October 1, 2023 to December 31, 2023.
GPF interest rate not increased for the 16th consecutive quarter
The government has not changed the interest rates on GPF and mixed funds for the October-December quarter of 2023. This is the 16th consecutive quarter when the interest rate on GPF and mixed funds has not been increased. Let us tell you that the interest rates of GPF and mixed funds follow the interest rates of Public Provident Fund (PPF). In such a situation, when the interest rate of PPF increases, the interest rate of these funds also increases. The Finance Ministry has not increased the interest rates of PPF for the December quarter.
What is General PF and who gets it?
General Provident Fund (GPF) is given only to government employees. Under GPF, all government employees have to contribute a fixed percentage of their salary to the General Provident Fund. Therefore, the total amount accumulated during the employment period is paid to the employees at the time of retirement. The Finance Ministry revises the interest rate on this GPF every quarter.
- The funds getting 7.1 percent interest rate for the October-December 2023 quarter are-
- General Provident Fund (GPF) General Provident Fund for Central Service.
- General Provident Fund (GPF) General Provident Fund for Defense Services
- Contributory Provident Fund (CPF) Contributory Provident Fund.
- All India Services Provident Fund (AISPF)
- State Railway Provident Fund (SRPF).
- Indian Armament Department Provident Fund (AFPPF) Armed Forces Personnel Provident.
What is the interest rate on EPF?
A new interest rate of 8.15% will be applicable on Employees Provident Fund i.e. EPF deposits for the financial year 2022-23. The interest rate on Employees Provident Fund account is available only once a year i.e. on 31st March of the respective financial year. The Central Government has approved EPFO to deposit interest at the rate of 8.15% for 2022-23.
What is the interest rate on Small Savings Scheme?
The Central Government operates 12 types of deposit schemes under the Small Savings Scheme or Post Office Savings Scheme. The Finance Ministry reviews the interest rates of these schemes every quarter. While announcing the interest rates for the December quarter, the Finance Ministry has increased the interest rate on 5 year RD only by 20 basis points, which has increased from 6.15 percent to 6.7 percent. The interest rate on remaining schemes will be available as per September quarter only.
