Government Employees’ Provident Funds: The interest rate on General Provident Funds, or GPF, for the quarter of October to December has been released by the Central Government. For this quarter, the interest rate on GPF has remained at 7.1%. From October 1 through December 31, 2023, this interest rate will be in effect. Let us inform you that the GPF is a social security programme offered to employees of the central government. A government worker who contributes a specific portion of his pay can join the organisation.
Exclusively Employee Contributions to GPF Account with Government Interest
To the GPF account, only the employee makes contributions. The government does not make any contributions. Government interest is paid on this. The rate of contribution, however, could not be less than 6% of the employee’s entire annual compensation. 100% of the employee’s pay can be contributed as the maximum. This account will mature when the owner retires.
Borrowing Money from GPF and Its Tax-Saving Benefits Under Section 80C
Additionally, there is the option to borrow money from the GPF. This is a tax-saving strategy as well. Taxpayers are free from this under Section 80C of the Income Tax. The Ministry of Personnel, Public Grievances and Pensions’ Department of Pension and Pensioners’ Welfare oversees the GPF.
Interest Rate Updates for PPF and RD Programs
The Public Provident Fund, or PPF, interest rate was left unchanged by the government as well. Recently, the government adjusted the interest rate for the October quarter on only five-year recurring deposit (RD) programmes. The interest rate on it has gone up to 6.7 percent from 6.5 percent. The interest rates for PPF and all other small savings plans, however, have not changed. The PPF interest rate is 7.1%.