GPF Rate Announced: Interest Rate On General Provident Fund Unchanged At 7.1% For Jan-March 2024 Quarter

The Finance Ministry has kept the interest rate for the General Provident Fund (GPF) unchanged at 7.1% until March 2024. With this the government has also kept interest rates for other provident fund schemes constant for the January - March 2024 quarter. The GPF interest rates for the previous quarter also stood at 7.1%.

According to the resolution released by the Department of Economic Affairs (DEA), Ministry of Finance on January 2, 2024, "It is announced general information that during the year 2023-2024, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest atthe rate of 7.1% w.e.f . 1 January 2024 to 31th March, 2024. This rate will be in force w.e.f . 1 January, 2024."

The government has kept the interest rate on GPF and linked funds constant for this quarter of 22024. As per the notification, the interest rate of 7.1% for the period January-March 2024, will apply to other provident fund schemes including General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, General Provident Fund (Defence Services), Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen's Provident Fund, Indian Naval Dockyard Workmen's Provident Fund, Defence Services Officers Provident Fund, and Armed Forces Personnel Provident Fund.

General Provident Fund, is a type of PPF (Public Provident Fund) account that is available only for government employees in India. Interest rates on GPF are revised every quarter. One must note that the interest rate of these provident fund schemes usually follows the interest rate of the Public Provident Fund (PPF). All government employees are eligible to contribute a portion of their pay to the General Provident Fund (GPF). As a result, at the time of retirement, the complete sum accumulated over the employment term is paid to the employees.

EPF interest rate

The government revises EPF interest rate each year. For FY 2023-24, it is set at 8.15%.

Small saving schemes' interest rates for 2024 January - March quarter

The government has hiked interest rates for selected small savings plans and post office schemes for the period ending March 31, 2024. The government has also hiked the Post office time deposit for tenure 3 years by 10 basis points (bps).