Finance Ministry Announces Interest Rates For GPF, Other Provident Funds For July-Sept 2024 Quarter

New Delhi: The Ministry of Finance has announced the new interest rates for the General Provident Fund (GPF) and similar provident fund schemes which is effective for the July-September quarter.

"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 per cent with effect from 1st July 2024 to 30th September 2024. This rate will be in force w.e.f. 1st July, 2024.” in a circular dated July 3, the Ministry of Finance said. (Also Read: Budget 2024: Nirmala Sitharaman's Budget May Bring Relief For India's Senior Citizens)

How much is the General Provident Fund (GPF) interest rate for July-September 2024?

The interest rate for the General Provident Fund (GPF) will be 7.1 per cent for the July-September quarter of 2024, starting on July 1, 2024. (Also Read: Credit Card Update: Why HDFC, Axis Bank, Other Banks Customers Can't Make Credit Card Bill Payments Using CRED, PhonePe, Paytm? EXPLAINED)

Here are the schemes that will earn interest rates of 7.1 per cent for the July-September quarter:

- General Provident Fund (Central Services)

- Contributory Provident Fund (India)

- All India Services Provident Fund

- State Railway Provident Fund

- General Provident Fund (Defence Services)

- Indian Ordnance Department Provident Fund

However, for the July-September quarter, the Centre has chosen to keep the interest rates of minor savings schemes unchanged. The Senior Citizen Savings Scheme (SCSS) will maintain its interest rate at 8.2 per cent while the National Savings Certificate (NSC) will continue at 7.7 per cent.

Further, the Monthly Income Account Scheme (MIS) will offer an interest rate of 7.4 per cent during this period. Starting from the September quarter, the 5-year recurring deposit will yield an interest rate of 7.5 per cent.

What is a General Provident Fund (GPF)?

The General Provident Fund (GPF) is a savings scheme designed for government employees. Under this system, a portion of the employees' salary is deducted and deposited into their GPF account. The accumulated amount along with interest is paid out to the employee upon retirement or superannuation. 

Established in 1960 and managed by the Central government, the GPF offers competitive interest rates that are revised quarterly. This makes it a reliable investment option for government employees providing financial security for retirement and unforeseen financial needs.