General PF Interest Rate: If you yourself or any government employee in your family then this news is for you.
Yes, the Finance Ministry has given its decision on the interest rate of General Provident Fund (General PF) for the October-December quarter of the financial year 2024. The interest rate of GPF has been kept unchanged at 7.1 percent by the Finance Ministry. That means, this quarter too, interest will be paid on GPF at the old rate of 7.1 percent. This interest rate will be effective from 1 October 2023 to 31 December 2023.
Only government employees can invest
Let us tell you that GPF is a social security scheme available for central employees. Government employees can become its members by contributing a fixed portion of their salary. Only government employees can invest in GPF account. There is no contribution of any kind in this from the government. The government gives only interest on this. However, this investment should not be less than 6% of the employee’s salary.
Exemption to taxpayers under Section 80C,
the maximum contribution in this can be up to 100% of the employee’s salary. The maturity of the investment made in this occurs at the time of retirement. Employees can also take loan against GPF.
In this tax saving scheme, taxpayers get exemption under Section 80C. On the other hand, the government has not changed the interest rate of PPF for the October to December quarter. This also remains at the old level of 7.1 percent.
Recently, the government had changed the interest rate of 5 year RD scheme in small saving schemes for the October quarter. The Finance Ministry had increased its interest rate from 6.5 percent to 6.7 percent. There was no change in the interest rates available on other small savings schemes including PPF.
