Government announces GPF interest rate for July-September 2021 quarter, to get 7.1% interest

 Government announces GPF interest rate for July-September 2021 quarter, to get 7.1% interest

 Government announces GPF interest rate for July-September 2021 quarter, to get 7.1% interest

The government has announced interest rates for other funds, including the General Provident Fund (GPF), for the July-September 2021 quarter. Accordingly, it will continue to earn interest at 7.1% this quarter as in the previous quarter. According to the Finance Ministry's notification, the interest rate will also apply to public provident funds, apart from provident funds of central employees, railways and security forces. The new interest rates are effective July 1, 2021. The interest rate on GPF is reviewed every 3 months.

This interest will be found on these schemes

    The General Provident Fund (Central Service)

    The Contributory Provident Fund (India)

    The All India Service Provident Fund

    The State Railway Provident Fund

    The General Provident Fund (Defense Service)

    The Indian Ordnance Department Provident Fund

    The Indian Ordnance Factories Workmen's Provident Fund

    The Indian Naval Dockyard Workmen's Provident Fund

    The Defense Service Officers Provident Fund

    The Armed Forces Personal Provident Fund

GPF is a type of provident fund

This is a type of provident fund account but it is not for every type of employee. The benefit of GPF is available only to government employees and also at the time of retirement. This is a type of retirement planning, as the amount is received by the employee after retirement. A government employee can contribute up to 15% of his salary to the GPF account.

This is how it works

A GPF account requires a government employee to contribute a certain amount to the installment. The account holder can also create a nominee at the time of opening a GPF account. The account holder is paid the money deposited in it after retirement, as well as the nominee is paid if something happens to the account holder.

Loans can be taken on it

There is a facility to take a loan on GPF and the special thing is that the loan is interest free. An employee can take a loan from GPF any number of times in his entire career i.e. he does not have a fixed number.

Different than PF and PPF

Provident Fund (PF) account can be of any employee. Whether it is in government job or private. It is opened by the employer and contributes 12-12 per cent from both the employer and the employer. Out of 12 per cent of employers, 8.33 per cent goes to employee's pension. Employees can withdraw their PF funds as and when required.

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Any citizen can open a Public Provident Fund (PPF) account on their own. He does not have to be an employee. It is a savings cum tax savings account. The advantage of this is that the deposit is tax free, the interest earned on it and the money earned on maturity is not taxable. The maturity period of PPF is 15 years. It can be invested from a minimum of Rs 500 to Rs 1.5 lakh per annum.