Central government staff: Finance Ministry announces interest rates for GPF and other provident funds for July-Sept 2024 quarter

Central govt employees' salary: The Finance Ministry has announced the interest rates for the General Provident Fund (GPF) and other provident fund schemes for July-September 2024, according to a government circular.

In its circular dated July 3, the Ministry of Finance 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 per cent with effect from 1st July 2024 to 30th September 2024. This rate will be in force w.e.f. 1st July, 2024."

Schemes come under for which government announced a 7.1 per cent interest rate

Here is a list of companies for which the Centre has announced a 7.1 per cent interest rate for July-September quarter.

The schemes that will fetch interest rates of 7.1 per cent for the July-September quarter are the General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, The State Railway Provident Fund, The General Provident Fund (Defence Services) and The Indian Ordnance Department Provident Fund.

However, the Centre has held the interest rates of minor savings schemes intact for the July-September quarter, with the Senior Citizen Savings Scheme (SCSS) at 8.2 per cent and the National Savings Certificate (NSC) at 7.7 per cent.

What is a General Provident Fund (GPF)?

GPF is a provident fund system for government employees. In this approach, government employees contribute a portion of their salary to the account. The accruing sum is paid to the employee upon retirement or superannuation.

The scheme was introduced in 1960 and is managed by the Central government. The GPF also provides a competitive interest rate, which is changed quarterly. This characteristic makes it a good investment for government employees since it is a safe method to save for retirement and gives financial stability in unexpected circumstances.