GPF Interest Rates

GPF Interest Rates determine the returns on Government Provident Fund investments, impacting savings growth for employees.
GPF Interest Rates
3 min
10 April 2024

The General Provident Fund (GPF) is a savings tool for government employees in India. It allows you to contribute a significant portion of your money to a dedicated GPF account and withdraw the funds with accrued interest during retirement or emergencies.

Continue reading this article as we will take an in-depth look into GPF and the General Provident Fund’s interest rates, key features, how they work, and more.

What is a General Provident Fund (GPF)

The General Provident Fund is a retirement and savings plan designed for Indian government employees. It allows government workers to contribute a certain amount each month, regardless of their level or sector.

GPF funds are secure, risk-free, and backed by the government. Thus, employees can confidently retire, knowing their investments are safe.

If you are looking for a safe investment option, you can consider fixed deposit. They offer guaranteed returns and a fixed interest rate throughout your investment tenure.

What is the current GPF interest rate

Knowing the GPF interest rates is vital for Indian government employees looking to secure their retirement. The government sets this rate, which changes based on the economy.

As of FY 2023-24, the interest rate is 7.1%.

Even though the interest can change, the GPF is a reliable way for government workers to save for retirement. For this reason, employees should be aware of the GPF's current rate to make an informed investment decision.

GPF interest rates, year-wise tabular list

Understanding the GPF's previous interest rates will aid you in analysing government revisions. Government employees seeking to open a GPF account can find the year-by-year table of GPF interest rates below:

Financial Year GPF interest rate(s)
 2007-08 8.00%
 2008-09 8.00%
 2009-10 8.00%
 2010-11 8.00%

8.00 % (till Nov ‘11) 
8.60 % (Nov ‘11 to March ’12)
 2012-13 8.80%
 2013-14 8.70%
 2014-15 8.70%
 2015-16 8.70%
 2016-17 8.10 % (till Sept ‘16) and 8% (Sept ‘16 to Mar ‘17)

7.90 % (Apr ‘17 to June ‘17) 
7.80 % (July ‘17 to Sep ‘17) 
7.80 % (Sept ‘17 to Dec ‘17) 
7.60 % (Jan ‘18 to Mar ‘18) 

7.60 % (April to Sept ‘18) 
8.00 % (Oct to March ‘19)

8.00 % (April to June ‘19) 
7.90 % (July to March ‘20)
 2020-21 7.10%
 2021-22 7.10%
 2022-23 7.10%
 2023-24 7.10%

You can also consider investing in Bajaj Finance Fixed Deposit as they offer competitive interest rate of up to 8.85% p.a.

How does GPF work

GPF works by contributing a part of your salary to a GPF account each month until you retire. This saved money will be given to you upon retirement, along with interest (depending on the current General Provident Fund interest rates).

Furthermore, you can choose how much to invest, from a minimum of 6% of a basic salary to your entire income. However, it is essential to remember that to keep your account active, you need to contribute every month except during suspension periods.

Key features of GPF

The Ministry of Personnel, Public Grievances, and Pensions manages the GPF. Here are the key features of the General Provident Fund.

  • Membership: Indian government workers can join this scheme by contributing a part of their salary.
  • Interest rate: The GPF currently offers a 7.1% interest rate, which is adjusted periodically.
  • Monthly contributions: Members contribute a monthly fee, except during suspensions. Subscriptions stop three months before retirement.
  • Nomination and final balance: Upon joining, members can nominate a close relative to receive their accumulated funds in case of their death.
  • Death benefits: In the event of the employee’s death, the nominee is entitled to the accumulated balance in the account and an extra amount calculated based on the average balance over the past three years (up to Rs. 60,000).

To qualify for this benefit, the investor and their families must have at least 5 years of service. Thus, they can be assured of financial support during difficult times of crisis.

Eligibility for GPF

The General Provident Fund (GPF) applies to all Indian government workers, including permanent staff, apprentices, and re-hired pensioners, after a year of continuous service. So, if you are employed by the Indian government, GPF could be a worthwhile option!

GPF nomination

A GPF nomination lets a government employee choose who can receive their saved money (in a GPF account) if they die, ensuring a smooth transfer to their loved ones. Moreover, you can even split the money between nominees.

List of funds for which the new rate will be applicable

The recent interest rate 2023-24 reduction affects other government savings plans as well, not just the General Provident Fund (GPF), including railway and armed forces pension funds.

In addition to the PPF, these funds also refer to the following government funds:

  1. The Contributory Fund (India)
  2. The General Provident Fund (GPF) (Central Services)
  3. The All India Services Provident Fund
  4. The Defense Services Officers Provident Fund
  5. The State Railway Provident Fund
  6. The Indian Ordnance Factories Workmen’s Provident Fund
  7. The Armed Forces Personnel Provident Fund
  8. The Indian Ordnance Department Provident Fund
  9. The General Provident Fund (GPF)
  10. The Indian Naval Dockyard Workmen’s Provident Fund


The General Provident Fund (GPF) is a savings program for government employees in India. It is a secure way to save for retirement with government-backed GPF interest rates. So, if you are a government employee in India, investing in GPF can be a wise decision for your long-term financial security.

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Frequently asked questions

What is the current GPF interest rate?

GPF's interest rate is 7.10% as of today for the financial year 2023-2024.

How often are GPF interest rates revised?

The GPF interest rates are reviewed and revised on a quarterly basis by the finance minister of India.

Is there a minimum investment amount required for GPF?

No, there is no minimum investment amount for GPF in the strictest sense. However, there is a minimum contribution requirement, which is 6% of your basic salary .

Are there any tax benefits associated with investing in GPF?

Yes, the entire amount you receive upon maturity from your GPF account, including both your contributions and accrued interest, is tax-free.

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