In a recent announcement, the government has decided to keep the interest rate on General Provident Fund (GPF) savings unchanged at 7.1% for the October-December quarter. This marks the 15th successive quarter where the government has maintained the status quo, ensuring stability for government employees’ retirement savings.
Finance Ministry’s Notification
The Finance Ministry officially notified the retention of the 7.1% interest rate. This rate is also applicable to other provident funds for government employees, including those serving in crucial sectors such as Railways and the Armed Forces.
Steady Rates Amidst Economic Changes
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 fluctuations in the economy and changes in other financial sectors, the government has kept the GPF rate steady, providing consistent returns for government employees.
Selective Adjustments in Small Savings Schemes
While certain small savings schemes have witnessed rate hikes for five consecutive quarters, the popular Public Provident Fund (PPF) has remained untouched at 7.1% since the first quarter of 2020-21. Last week, the government maintained the interest rates for 11 out of 12 small savings schemes at the same levels as the previous quarter. Notably, the returns on five-year recurring deposits were raised to 6.7% for this quarter, a slight increase from the 6.5% offered in the July-September period.