GPF Interest Rate Hike: They will not get increased interest for this quarter on the special General Provident Fund for central government employees.
The government has retained the interest rate of 7.1 percent for the fourth quarter of the current financial year on the General Provident Fund or General Provident Fund (GPF) and other similar funds for government employees. Prior to this i.e. in the quarter ending December 31, the interest rate on GPF was 7.1 percent. The Finance Ministry said in a notification on Tuesday, “This rate is valid from January 1, 2023 to March 31, 2023.” This rate has come into effect from January 1, 2023.
What is GPF or General Provident Fund?
GPF is a social security scheme, which is run for central government employees. Under this scheme, the employees are allowed to put some percentage of their salary in this scheme and their contribution keeps on accumulating in this fund. When he retires, his entire amount is paid to him.
The government revises the interest rates of GPF every quarter. This rate of 7.1% is also applicable to other provident funds run by other governments, such as Contributory Provident Fund, All India Services Provident Fund, Armed Forces Personnel Provident Fund, State Railway Provident Fund, etc.
There is no change in the interest rates of PPF, but small savings schemes will get more returns
Just in last week’s update, the government had also revised the interest rates of Public Provident Fund, but there was no change in its rates as well. Its rates also remain at 7.1%. However, interest rates on small savings deposit schemes including post office FD, NSC and Senior Citizen Savings Scheme were hiked by up to 1.1 per cent. This new rate has come into effect from January 1.
Mainly the interest of such post office schemes has been increased, on which income tax benefits are not available. There has been no change in the interest rates of the girl child savings scheme ‘Sukanya Samridhi’.
According to the notification of the Ministry of Finance, the interest rate on NAC, Senior Citizen Savings Scheme and Kisan Vikas Patra (KVP) has been increased by up to 1.1 percent. The income from these plans is taxable. National Savings Certificate (NSC) is getting interest at the rate of seven percent from January 1.
Similarly, the Senior Citizens Savings Scheme is getting eight percent interest as against the existing 7.6 percent. Interest rates on Post Office Fixed Deposit Scheme have increased by 1.1 percent for a period of one to five years. In the monthly income scheme also, instead of 6.7 percent, now 7.1 percent interest is being received.
