In a recent development, the government has chosen to retain the interest rate for the General Provident Fund (GPF) at 7.1% for the October-December quarter. This decision marks the 15th consecutive quarter in which the government has upheld this interest rate, ensuring consistent returns for government employees’ retirement savings.
The Finance Ministry has officially confirmed the continuation of the 7.1% interest rate, which also applies to various other provident funds catering to government employees, including those in critical sectors like Railways and the Armed Forces.
The last adjustment to the GPF rate occurred in the first quarter of 2020-21 when it was reduced from 7.9% to 7.1%. Despite economic fluctuations and changes in other financial sectors, the government has maintained the GPF rate, providing a steady financial outlook for government employees.
While some small savings schemes have experienced rate increases for five consecutive quarters, the popular Public Provident Fund (PPF) has remained unchanged at 7.1% since the first quarter of 2020-21. Notably, the government has retained the interest rates for 11 out of 12 small savings schemes at the same levels as the previous quarter. Additionally, the returns on five-year recurring deposits have been raised to 6.7% for this quarter, a slight increase from the 6.5% offered in the July-September period.