? Cool Title, but what’s the news?
The government has increased the rate of interest for General Provident Fund (GPF) and other related schemes by 0.4 percentage points to 8 per cent for the October-December quarter.
? Okay, but what does it mean?
The rate is in line with that for Public Provident Fund.
The interest rate on GPF was 7.6 per cent for the July-September quarter of 2018-19. Last month, the government announced that the interest on small savings, including NSC and PPF, will be hiked by up to 0.4 percentage point for the October-December quarter, to align it with rising deposit rates in the banks.
? Why should I care?
Because this is a healthy sign for the government employees and users of the provident fund schemes as well. It means that the 0.4 basis point increase will give the employees more incentive to increase their shares in the GPF & PPF accounts.
Thus, aiding in savings, returns & tax savings!