General Provident Fund: There is relief news for central government employees. The Ministry of Finance has announced an interest rate of 7.1% on General Provident Fund (GPF) and other related provident fund schemes for the quarter from July to September 2025. This interest rate has been retained as before and will be applicable from 1 July 2025 to 30 September 2025.
The Finance Ministry issued a circular on July 2, 2025, saying, “During the year 2025-26, interest will be paid at the rate of 7.1 per cent on deposits in the General Provident Fund and other similar funds. This rate will be effective from July 1, 2025.”
On which funds is this interest applicable?
The following Provident Fund schemes will come under this interest rate-
General Provident Fund (Central Services)
Contributory Provident Fund (India)
All India Services Provident Fund
State Railway Provident Fund
General Provident Fund (Defense Services)
Indian Ordnance Department Provident Fund
All these schemes are availed by central government employees, and this interest rate provides them with stable and secure returns on savings.
Interest rates on small savings schemes also remain unchanged
Not just GPF, the government has also not made any changes in the interest rates of small savings schemes for the July-September quarter. Let us tell you that 8.2% interest will continue to be available on Senior Citizen Savings Scheme (SCSS) and 7.7% interest on National Savings Certificate (NSC). The rates of these schemes also give investors higher returns than banks, which makes them an attractive option for the long term.
What does this rate mean for investors?
The decision to keep interest rates stable has come at a time when there is uncertainty in the market and after the cut in repo rate, many banks have reduced fixed deposit rates. In such a situation, investing in government provident funds remains profitable in terms of safe and stable returns. Government employees, from whose salary PF is deducted every month, will get relief from this decision because the 7.1% interest on GPF remains better than many other banking options.
