GPF, CPF interest rates kept unchanged for the quarter April-June 2023

Despite a significant increase in the interest rates of select small savings schemes, effective from April 1, 2023, many provident fund investors would be disappointed. The Ministry of Finance has
announced the interest rate for General Provident Fund (GPF) and other similar provident fund schemes. The ministry has kept the interest rate unchanged for GPF and similar funds for the April-June quarter of 2023. This is on the expected line because the interest rate of these provident funds usually follows the interest rate of the Public Provident Fund (PPF) which remained unchanged for the June quarter of 2023.

According to the resolution released by the Department of Economic Affairs (DEA), Ministry of Finance on April 10, 2023, "It is announced for 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 at the rate of 7.1 per cent (Seven points one per cent) w.e.f. 1st April, 2023 to 30th June, 2023."

Accordingly, the interest rate on GPF and other similar funds would be 7.1 per cent for the April-June quarter, of 2023. These rates are effective from April 1, 2023, the DEA said in the resolution.

Interest rates of GPF, and other provident fund schemes for the June quarter
The funds that will fetch an interest rate of 7.1 per cent for the April-June quarter of 2023 are:

1. The General Provident Fund (Central Services);
2. The Contributory Provident Fund (India)
3. The All India Services Provident Fund
4. The State Railway Provident Fund
5. The General Provident Fund (Defence Services)
6. The Indian Ordnance Department Provident Fund

What is a General Provident Fund?
General Provident Fund is a type of provident fund that is available only for government employees in India. All government employees are allowed to contribute a certain percentage of their salary to the General Provident Fund. Hence, the total amount accumulated during the employment term is paid to the employees at the time of retirement. The finance ministry revises the interest rate on GPF every quarter.

The Employees Provident Fund Organisation (EPFO) has fixed the interest rate of EPF at 8.15 per cent for the financial year 2022-23.

Small saving schemes’ interest rates for the April-June quarter of 2023
The Union government increased the interest rates of certain small savings schemes for the April-June quarter of 2023. The interest rate of the Senior Citizen Savings Scheme has been hiked from 8 per cent to 8.2 per cent. National Savings Certificate (NSC) will fetch an interest of 7.7 per cent for the June quarter of 2023. Earlier, the interest rate of NSC was 7 per cent for the January-March quarter, of 2023. The interest rate of the Sukanya Samriddhi Account Scheme has been increased from 7.6 per cent to 8 per cent for the June quarter of 2023.

The interest rate on a one-year post office deposit has been raised from 6.6 per cent to 6.8 per cent while the interest rate of a two-year time deposit has been increased from 6.8 per cent to 6.9 per cent. The interest rate of a three-year time deposit has been increased from 6.9 per cent to 7 per cent. The interest rate of a five-year time deposit has been increased from 7 per cent to 7.5 per cent.

However, the interest rate of PPF has been kept unchanged for the April-June quarter of 2023.