Published On: Tue, Feb 16th, 2016

GPF interest rate likely to be retained at 8.7% for 2016-17

New Delhi: The government is likely to retain the rate of interest for General Provident Fund (GPF) and other related schemes at 8.7 per cent for the fiscal 2016-17.

General Provident Fund (GPF) is basically a plan to provide financial security after retirement.Photo: Reuters

General Provident Fund (GPF) is basically a plan to provide financial security after retirement.
Photo: Reuters

The 8.7 per cent interest will apply on Provident Funds of central government employees, state governments employees, railways and defence forces, in line with the interest rate fixed for Public Provident Fund.

Currently, PPF deposits get 8.7 per cent interest rate and the government today retained the interest rate of Public Provident Fund (PPF) for the financial year 2016-17.

The interest rate on 5-year National Savings Certificate (NSC) and monthly income schemes (MIS) also left untouched for next the fiscal.

The government today, however, cut interest rates on small savings of 1, 2, 3 year term deposits; Kisan Vikas Patra and 5-year Recurring Deposit by 0.25 percent from the existing rates.

The Finance Ministry emphasised that small savings interest rates would be set quarterly from April 1 to align them with market rate of G-Secs.

TST

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