The Department of Economic Affairs, Ministry of Finance has announced the GPF interest rate 2023 for General Provident (GPF) and other similar provident fund schemes.
The ministry has retained the interest rate, i.e., it has kept rates for GPF and similar funds unchanged for the January- March of 2023. The rate is effective from January 1, 2023, until March 31, 2023.
General Provident Fund (GPF) is a savings scheme for government employees in India. It is a long-term investment plan where employees can save a part of their monthly salary to create a corpus for their retirement.
The interest rates on GPF are revised every quarter. In this page, we will provide information on the GPF interest rate for the year 2023 and its impact on government employees.
What is a General Provident Fund?
Only government employees in India have access to a certain sort of provident fund, known as the General Provident Fund. All public servants are permitted to put a set amount of their pay into the General Provident Fund.
As a result, at the time of retirement, employees receive the complete amount accrued during the course of their employment. The finance ministry revises the interest rate on GPF every quarter.
What is GPF?
General Provident Fund (GPF) is a savings scheme for government employees. It is a voluntary scheme where employees can contribute a part of their salary towards the scheme.
The contributions made by the employees are matched by the government. The funds collected through GPF are invested in various schemes like government bonds, securities, and other approved securities.
Benefits of GPF
- Long-term savings
- Guaranteed returns
- Tax benefits
- Loan facility
- Portable account
- Pension benefits
GPF Interest Rate 2023
The GPF interest rate for the year 2023 has been announced in line with in line with the current trend of declining interest rates.
The GPF interest rate for the year 2022 was 7.1%, which was a decrease from the previous year’s rate of 7.9%. The interest rate on GPF is revised every quarter based on the prevailing market conditions and the government’s borrowing rates.
GPF Interest Rate Table
From 2016-17 onwards Interest rates announced on quarterly basis. Check the below GPF interest rate for last 10 years or GP interest rate year wise list or GPF interest rate table or GPF Interest rate list.
|Year||Quarter 1||Quarter 2||Quarter 3||Quarter 4|
|APR-JUN Rate||JUL-SEP Rate||OCT-DEC Rate||JAN-MAR Rate|
GPF Interest Rate from 1956 to 2011
|Year||Rate (in %)||Year||Rate (in %)|
|1972-1974||6||04/2011 – 11/2011||8|
|1974-1975||7.2||12/2011 – 03/2012||8.6|
Impact of GPF Interest Rate on Employees
The GPF interest rate has a direct impact on the retirement savings of government employees. A higher interest rate means higher returns, which translates into a bigger corpus at retirement. On the other hand, a lower interest rate means lower returns, which can affect the retirement savings negatively.
Calculation of GPF Returns
Let’s take an example to understand the calculation of GPF returns. Suppose an employee contributes Rs. 10,000 to GPF every month for 25 years. If the GPF interest rate is 7.1%, the total corpus at the end of 25 years would be Rs. 1,12,02,252. However, if the interest rate is reduced to 6.5%, the corpus would be reduced to Rs. 1,01,32,265, a difference of almost Rs. 11 lakhs.
How to Check GPF Balance and Interest Rate?
Government employees can check their GPF balance and interest rate by following these steps:
- Visit the official website of their state government’s GPF office.
- Click on the GPF statement option.
- Enter their GPF account number and password.
- The GPF statement will be displayed on the screen, showing the balance and interest rate.
Interest rates of GPF, other provident fund schemes
According to a resolution released by the Department of Economic Affairs (DEA), Ministry of Finance, the interest rate on GPF and other similar funds will continue to be 7.1% for the January-March quarter of 2023. These rates are effective from 1 January to 31 March, 2023.
The funds that will fetch an interest rate of 7.1 per cent for the January – March quarter, 2023 are
- The General Provident Fund (Central Services);
- The Contributory Provident Fund (India)
- The All India Services Provident Fund
- The State Railway Provident Fund
- The General Provident Fund (Defence Services)
- The Indian Ordnance Department Provident Fund
- The Indian Ordnance Factories Workmen’s Provident Fund
- The Indian Naval Dockyard Workmen’s Provident Fund
- The Defence Services Officers Provident Fund
- The Armed Forces Personnel Provident
Factors Affecting GPF Interest Rate
The GPF interest rate is influenced by several factors, including:
1. Inflation Rate
Inflation rate is one of the primary factors that affect the GPF interest rate. Inflation erodes the value of money over time, which means that the government needs to pay higher interest rates to compensate for the loss in purchasing power.
2. Economic Growth
The economic growth of a country also affects the GPF interest rate. A higher economic growth rate translates into higher returns on investment, which can lead to higher GPF interest rates.
3. Government Borrowing Rates
The government borrowing rates also play a significant role in determining the GPF interest rate. The government borrows money from the market to finance its expenditure, and the interest rate it pays on these borrowings influences the GPF interest rate.
4. Market Conditions
The prevailing market conditions like stock market performance, currency exchange rates, and global economic conditions also impact the GPF interest rate. If the market conditions are favorable, the GPF interest rate can be increased to attract more investments.
AP GPF Interest Rate 7.1% for 2023
GOVERNMENT OF ANDHRA PRADESH; Provident Fund-Interest rates on General Provident Fund (Andhra Pradesh) for the subscribers of GPF and other similar funds as 7.1% (Seven point one percent) per annum with effect from 01.04.2017 to 30.06.2017 for the year 2017-18 – Orders Issued.
TS GPF Interest Rate 7.1% from 2020 to 2023
Government of Telangana, after careful consideration of the matter, hereby adopt the rate of interest @ 7.1% per annum for the period from 01.10.2020 to 31.03.2023 during the years 2020 – 2021, 2021-2022 & 2022-2023 on the following provident Funds on par with the rates of Government of India.
- The General Provident Fund (Telangana State) Rules, 1935.
- The Electricity Department provident Fund Rules.
- Emergency Cut and Compulsory Saving Rules, 1949.
- Government Distilleries Employees provident Fund.
- Telangana State Government Life Insurance Fund.
- Telangana State employees Welfare Fund Rules.
|Quarter||TS GPF Rate of Interest|
|2020 – 2021||7.1%|
|2021 – 2022||7.1%|
|2022 – 2023||7.1%|
Frequently Asked Questions (FAQs)
What is the current GPF interest rate?
The current GPF interest rate is 7.1%.
Is the GPF interest rate fixed?
No, the GPF interest rate is revised every quarter based on market conditions and government borrowing rates.
Can employees withdraw money from GPF before retirement?
Yes, employees can withdraw money from GPF for specific purposes like education, medical treatment, or building a house.
Is the interest on GPF taxable?
No, the interest on GPF is exempt from income tax.
Can employees invest in other savings schemes apart from GPF?
Yes, employees can invest in other savings schemes like Public Provident Fund (PPF), National Pension Scheme (NPS), and Employee Provident Fund (EPF).
GPF is an important savings scheme for government employees in India, and the interest rate on GPF plays a critical role in determining the retirement savings of employees.
The GPF interest rate for the year 2023 has been announced in line with the current trend of declining interest rates. Government employees should keep a close eye on the interest rate and make informed decisions about their investments.