The Central Government has announced interest rates for the General Provident Fund for the quarter from October to December. The Central Government has not changed the interest rates on General Provident Fund and other similar schemes for the third quarter of the current financial year. That is, investors will get 7.1 percent interest during this quarter. This has been confirmed by the Budget Division of the Department of Economic Affairs, Ministry of Finance.
The notification of the budget division said, “For a general information, it is being announced that the interest rate of General Provident Fund will be 7.1 percent. It will be applicable from 1st October 2021. Let us tell you, earlier the government had not made any change in the savings rates of small savings schemes like Sukanya Samriddhi Yojana, Public Provident Fund, National Savings Certificate for this quarter.
This interest rate will be applicable on all these schemes –
1- General Provident Fund (Central Services)
2- The Contributory Fund (India)
3- All India Service Provident Fund
4- State Railway Provident Fund
5- General Provident Fund (Defense Service)
6- Indian Ordnance Department Provident Fund
7- Indian Ordnance Factories Workmen’s Provident Fund
8- Indian Naval Dockyard Workmen’s Provident Fund
9- Defense Service Officers Provident Fund
10- Armed Forces Personal Provident Fund
What is GPF
GPF (Government Provident Fund) is directly linked to the provident fund of government employees. It works only on the PF side. Employees Provident Fund is applicable to companies where more than 20 employees are employed. Investment up to Rs 2.5 lakh in EPF remains out of the tax net, while in GPF this exemption remains only up to Rs 1.5 lakh.
