The Government Holds GPF Interest Rate Steady at 7.1% for Its 15th Consecutive Fiscal Term

Current Affairs

The authorities have maintained the interest rate of the General Provident Fund (GPF) at 7.1% for the fifteenth consecutive quarter, guaranteeing financial security for the retirement funds of government workers.

In a recent declaration, the authorities have opted to retain the interest rate for the General Provident Fund (GPF) savings at an unaltered 7.1% for the period spanning October through December. This action signifies the 15th consecutive quarter during which the government has chosen to uphold the existing conditions, providing steadfastness to the retirement savings of government personnel.

Notification from the Ministry of Financial Affairs

The announcement from the Ministry of Finance has formally confirmed the continuation of a 7.1% interest rate. This interest rate also extends to various provident funds designated for public sector workers, encompassing individuals in vital fields like the Railway industry and the Armed Forces.

Consistent Prices in the Face of Economic Shifts

In the initial quarter of the fiscal year 2020-21, the GPF rate underwent its most recent modification, declining from 7.9% to 7.1%. Despite the economy’s ebb and flow and alterations within various financial domains, the government has steadfastly maintained the GPF rate, ensuring a dependable yield for its civil servants.

Discriminative Modifications within Modest Savings Programs

Throughout the past five consecutive quarters, a number of minor savings schemes experienced increases in their interest rates. However, the widely favored Public Provident Fund (PPF) has held steady at a 7.1% interest rate since the onset of the first quarter of the 2020-21 fiscal year. Just last week, the government made the decision to maintain the interest rates for 11 out of 12 minor savings schemes, preserving them at the same levels as the preceding quarter. It’s worth noting that the rates for five-year recurring deposits saw a slight uptick, rising to 6.7% for the current quarter, which marks a modest increase from the 6.5% rate offered in the July-September period.

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