These employees get GPF

The Finance Ministry has notified the interest rate for this quarter on GPF savings on 10th April. It is almost equal to the Public Provident Fund (PPF). GPF interest rates are also applicable for other General Provident Fund like State Railway PF. Armed forces employees get PF, Defense Services officers get PF and Indian Ordnance Factories employees get GPF.

The money invested in PPF is tax free.

Small savings scheme

The interest on PPF was last increased in January 2019. There was no change in this till April 2020. Then it was reduced from 7.9% to 7.1%.

Small Saving Scheme

There are three categories of small savings schemes – Saving Deposit, Social Security and Monthly Income Plan etc. Savings deposits include 1-3 years time deposits and 5 years recurring deposits. These also include savings certificates like National Savings Certificate (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Account and Senior Citizen Savings Scheme. Monthly Income Plan includes Monthly Income Account.

These are the interest rates

1-year post office time deposit: 6.5%

2-year post office time deposit: 6.8%

3-year post office time deposit: 6.9 per cent

5-year Post Office Time Deposit: 7.0%

National Savings Certificate (NSC): 7.0 percent

Kisan Vikas Patra: 7.2 percent

Public Provident Fund: 7.1 percent

Sukanya Samriddhi Account: 7.6 per cent

Senior Citizen Savings Scheme: 8.0 percent

Monthly Income Account: 7.1 percent.

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