GPF Interest Rate: The department of economic affairs, under the Ministry of Finance, has kept the interest rates on General Provident Fund (GPF) and other similar funds unchanged at 7.9 per cent for the January-March 2020 quarter.
GPF is a kind of provident fund account available only for government employees in India.The employees contribute a certain percentage of their salary towards the General Provident Fund and the total amount accumulated throughout the employment term is paid to them at the time of their retirement.
Notably, the government revises the interest rate on small savings schemes and subsequently declares the rate on GPF and other schemes at the start of each quarter of the financial year.
Effective January 2020, the interest rate of 7.9 per cent will apply to these 10 funds:
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.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund
Earlier, the interest rate for Public Provident Fund (PPF), NSC and other small savings products were kept constant for the quarter January-March, 2020. Currently, the interest rate on PPF is 7.9 per cent per annum compounded annually.