The Ministry of Finance has announced the interest rates for the General Provident Fund (GPF) and similar provident fund schemes for July-September. In a resolution dated July 3, 2024, the ministry said, “It is announced for general information that during the year 2024-2025, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven points one percent) w.e.f. 1st July, 2024 to 30th September, 2024. This rate will be in force w.e.f. 1st July, 2024.”
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What will be the interest rate of GPF for the July-September 2024?
The interest rate on GPF will be 7.1% for the July-September quarter of 2024.
Did the ministry announce the interest rates of the other provident fund schemes?
Yes. The ministry has announced the interest rates of GPF and other similar provident fund schemes available to central government employees.
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The funds that will fetch interest rates of 7.1% for the July-September quarter of 2024 are:
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
What is GPF or General Provident Fund?
A General Provident Fund or GPF is a type of provident fund that is available only for government employees in India. All eligible government employees can contribute a certain percentage of their salary to the General Provident Fund. Hence, the total amount accumulated during the employment term is paid to the employees at retirement. The finance ministry revises the interest rate on GPF every quarter.
Will GPF investors get interest rate if the contribution exceeds Rs 5 lakh?
The Department of Pension and Pensioners’ Welfare has recently clarified the admissibility of interest on General Provident Fund subscriptions exceeding the threshold of Rs 5 lakh. In an office memorandum dated May 5, 2024, the department said that it has been decided that government servants’ GPF subscriptions exceeding Rs 5 lakh in the year 2022-23 may accrue interest, subject to applicable income tax. This decision provides clarity on the treatment of excess GPF contributions. The decision was taken after consulting the matter with the Ministry of Finance, the department said.
The memorandum further outlined the provisions of the General Provident Fund (Central Services) Rules, 1960, emphasising that the GPF subscription should not be less than 6% of the emoluments nor exceed the total emoluments of the subscriber.
Small saving schemes’ interest rates for the July-September quarter of 2024
The Centre has kept the interest rates of small savings schemes unchanged for the July-September quarter of 2024. The Public Provident Fund (PPF) fetches an interest rate of 7.1% for the July-September quarter while the Senior Citizen Savings Scheme (SCSS) will offer an interest rate of 8.2% for the same period. The interest rate of the National Savings Certificate (NSC) will be at 7.7% for the July-September quarter. The interest rate of the Monthly Income Account Scheme (MIS) will be 7.4% for the July-September quarter. Meanwhile the 5-year recurring deposit will fetch an interest rate of 7.5% for the September quarter.
