PF schemes : Good news for government employees, the interest rate of PF schemes has increased so much, know

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The Finance Ministry has announced an interest rate of 7.1% for the General Provident Fund (GPF) and other similar provident fund schemes of central government employees for the July-September quarter.

Good news for central government employees. The Finance Ministry has announced an interest rate of 7.1% for the General Provident Fund (GPF) and other similar provident fund schemes of central government employees for the July-September quarter.

In a circular issued on July 3, the Finance Ministry said, 'The amount deposited in the account of subscribers of General Provident Fund and other similar funds will attract interest at the rate of 7.1% from July 1, 2024 to September 30, 2024. This rate will be applicable from July 1, 2024

The schemes that got an interest rate of 7.1% in the July-September quarter included General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund, General Provident Fund (Defence Services) and Indian Ordnance Department Provident Fund

The central government has kept the interest rates of small savings schemes unchanged for the July-September quarter. The interest rate on Senior Citizen Savings Scheme (SCSS) was 8.2%, while the interest rate on National Savings Certificate (NSC) was 7.7%. With this new decision, government employees will get better returns on their savings, which will strengthen their financial position.

Interest rate on small savings scheme unchanged

Earlier, there was no change in the interest rate on small savings scheme for July-September 2024. However, investors in Senior Citizen Savings Scheme (SCSS) will get interest at the rate of 8.2%. Apart from this, 7.7% interest rate will be given on National Savings Certificate (NSC) and 7.4% interest rate on Monthly Income Account Scheme (MIS). 7.5% interest will be given on five-year RD for the September quarter. Let us tell you that the interest rate on General Provident Fund (GPF) and other provident fund schemes available to central employees is decided by the Ministry of Finance.

What is GPF?

GPF is a special type of savings scheme for government employees, called General Provident Fund (GPF). Government employees can deposit a part of their salary in this fund every month. The government fixes the interest rate on the deposit amount on a quarterly basis and interest is also deposited in the account. At the time of retirement of the employee, the entire amount deposited and interest on it are paid together.