General Provident Fund Interest Rate Holds Firm At 7.1% for April-June Quarter

General Provident Fund Interest Rate Holds Firm At 7.1% for April-June Quarter

The Ministry of Finance has recently announced the interest rate for the Q1, spanning from April to June Quarter.

Oliviya KunjumonUpdated: Thursday, June 13, 2024, 04:47 PM IST
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Provident Funds (PF) always plays an important role, especially for government employees and private sectors alike when it comes in the realm of personal finance and retirement planning.

The Ministry of Finance has recently announced the interest rate for the Q1, spanning from April to June Quarter. It has kept the GPF interest rate unchanged at 7.1 per cent for the April–June 2024 quarter.

“It is announced general information that during the year 2024-2025, 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 . 1 April, 2024 to 30 June 2024. This rate will be in force w.e.f . 1 April 2024,” added the resolution released by the Department of Economic affairs on June 10.

As per the resolution, the funds concerned are:

1. The General Provident Fund (Central Services).

2. The Contributory Provident Fund (lndia).

3. The All lndia Services Provident Fund.

4. The State Railway Provident Fund.

5. The General Provident Fund (Defence Services).

6. The lndian Ordnance Department Provident Fund'

7. The lndian Ordnance Factories Workmen's Provident Fund.

8. The lndian Naval Dockyard Workmen's  

9. The Defence Services Officers Provident Fund.

10. The Armed Forces Personnel Provident Fund.

Provident Funds (PF) always plays an important role in the realm of personal finance and retirement planning.

Provident Funds (PF) always plays an important role in the realm of personal finance and retirement planning. | Representative image

Basically, there are three prominent provident funds which include the General Provident Fund (GPF), the Employees' Provident Fund (EPF), and the Public Provident Fund (PPF).

What is GPF?

The GPF is basically a saving avenue especially available to government employees across various sectors. This include sectors like central services, defense, railways, and more.

Moreover, it operates on a simple principle where the employees contribute a portion of their salary to the GPF throughout their service period and then this corpus accumulates over time, providing a substantial lump sum at retirement.

Also, it is mandatory for a government employee to contribute a sum to the GPF.

GPF is basically a saving avenue especially available to government employees across various sectors

GPF is basically a saving avenue especially available to government employees across various sectors | X

EPF

Although GPF is catered to government employees, the Employees' Provident Fund (EPF) is designed for private sector workers.

It is managed by the Employees' Provident Fund Organization (EPFO), and operates in a similar manner but with some key differences.

Currently, the EPF offers an interest rate of 8.25 per cent for the fiscal year 2023–24.

PPF

It is opened to both salaried individuals and self-employed individuals and similar to the GPF, maintains an interest rate of 7.1 per cent since April 2020.

Furthermore, it offers a tenure of 15 years, extendable in blocks of 5 years.

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