GPF: There has been a significant update regarding the interest rate on the General Provident Fund (GPF). The government has announced the interest rates for the GPF for the October to December quarter of 2024. Interestingly, there has been no change in the interest rates; they remain fixed at 7.1%.
It is worth noting that the government revises the GPF interest rates every quarter. For the previous quarter, from July to September, the rate was also maintained at 7.1%. This consistent rate for the current quarter signifies the government’s approach towards ensuring stability for its employees.
The Department of Economic Affairs (DEA) has issued a formal notification confirming this rate. For those unfamiliar, the General Provident Fund is a long-term investment avenue specifically designed to aid government employees in saving throughout their employment tenure. It plays a pivotal role in the financial planning of government servants. They are mandated to contribute a fixed portion of their salary into this fund. Upon retirement, the accumulated sum, which includes their contributions and the compounded interest, is handed back to them.
Furthermore, the government also recently announced interest rates for various Small Savings Schemes. The interest on a 5-year Recurring Deposit (RD) saw a minor hike, moving from 6.50% to 6.70%. However, rates for other schemes have been kept unchanged.
The consistent rates on schemes like GPF underscore the government’s commitment to ensuring stable and attractive saving opportunities for its employees.
