GPF interest rate: If you are a government employee then this news is for you. Actually, the government has announced the interest rates of General Provident Fund (GPF) for the quarter January-March 2024.
GPF interest rate: If you are a government employee then this news is for you. Actually, the government has announced the interest rates of General Provident Fund (GPF) for the quarter January-March 2024. Interest will be available at the rate of 7.1% in this quarter. This interest rate is applicable till March 31, 2024.
Let us tell you that GPF allows government employees to accumulate savings during their employment period. This is a mandatory scheme, in which the employee has to contribute some percentage of his salary. The GPF scheme comes under the Ministry of Personnel, Public Grievances and Pensions.
Difference between GPF and EPF
The interest rate of General Provident Fund is reviewed every quarter. At the same time, the interest rate of Employees Provident Fund (EPF) is decided from year to year. The interest rate of EPF is revised by EPFO. It has been fixed at 8.15% for the financial year 2023-24. According to EPFO rules, an employee deposits 12 percent of his basic salary in the EPF account every month. The employer or company also contributes the same amount. Of the employer’s share, 8.33 per cent goes into the Employees’ Pension Scheme (EPS), while the remaining 3.67 per cent is invested in the EPF.
PPF interest rate can be estimated
Generally, the interest rate of GPF is estimated from the decision taken on the interest rate of Small Savings Scheme PPF. The government has not made any change in the interest rate of PPF for the fourth quarter (January-March) of the current financial year. Its interest rate is equal to GPF i.e. fixed at 7.1 percent. However, among small savings schemes, the government has increased the interest rate on Sukanya Samriddhi Yojana by 0.20 percent and the interest rate on three-year fixed deposit scheme by 0.10 percent. Under Sukanya Samriddhi Yojana, the interest rate on deposits has been increased from the current eight percent to 8.2 percent. The rate on three-year fixed deposits has been increased to 7.1 percent from the existing seven percent.
