Govt announces interest rates for GPF and Other Savings Schemes

The Department of Economic Affairs of the Ministry of Finance has released the interest rates for the General Provident Fund (GPF) for the quarter spanning July to September. As per the circular issued on July 4, 2023, it has been declared that for the fiscal year 2023-2024, the accumulations in the General Provident Fund and similar funds will earn an interest rate of 7.1 percent, effective from July 1, 2023.

The following funds will be eligible for the 7.1 percent interest rate during the June-September quarter:

1. General Provident Fund (Central Services)
2. Contributory Provident Fund (India)
3. All India Services Provident Fund
4. State Railway Provident Fund
5. General Provident Fund (Defence Services)
6. Indian Ordnance Department Provident Fund
7. Indian Navy Dockyard Workmen's Provident Fund
8. Defence Services Officers Provident Fund
9. Armed Forces Personnel Provident Fund

It is important to note that only government employees in India have access to the General Provident Fund, and all central government employees can contribute to it from their wages. Upon retirement, the accumulated amount is paid to the employees in full. The finance minister updates the GPF interest rate every three months.

Furthermore, the government has recently raised the interest rates for various small saving schemes during the June-September quarter of 2023. The interest rates have been increased by up to 30 basis points. The affected schemes include the 1- and 2-year post office time deposits, as well as the 5-year recurring deposits. The interest rate for the Public Provident Fund (PPF) remains unchanged at 7.1 percent.

For the period from July 1 to September 30, 2023, the interest rate for National Savings Certificates (NSCs) will remain steady at 7.7 percent. The Sukanya Samriddhi savings plan will continue to earn an interest rate of 8 percent. The interest rates for Kisan Vikas Patra (KVP) and the senior citizen savings plan are 8.2 percent and 7.5 percent, respectively.

Read the order here