Very comforting news has come out for the central government employees! The Finance Ministry has announced an interest rate of 7.1% on the General Provident Fund (GPF) and other related provident fund schemes for the July to September 2025 quarter. This interest rate has been retained as before and will be applicable from 1 July 2025 to 30 September 2025.
This decision has come at a time when there is an atmosphere of uncertainty in the market, and many banks have cut fixed deposit rates, making investment in the Government Provident Fund even more attractive. This ensures stable and safe returns on the savings of employees, thereby strengthening their financial security.
7.1% interest rate confirmed
The Finance Ministry has issued a circular on July 2, 2025, clarifying: “During the year 2025-26, interest will be paid at the rate of 7.1 per cent on deposits in the General Provident Fund and other similar funds. This rate will be effective from July 1, 2025.” This announcement is a big relief for lakhs of central employees who depend on the returns on their provident fund. With no change in the interest rate, the benefit on their savings will be ensured.
On which funds will this interest rate be applicable
This 7.1% interest rate will be applicable on the following Provident Fund schemes, which are mainly availed by central employees:
General Provident Fund (Central Services)
Contributory Provident Fund (India)
All India Services Provident Fund
State Railway Provident Fund
General Provident Fund (Defense Services)
Indian Ordnance Department Provident Fund
All these schemes provide stable and secure returns to central government employees on their savings, giving them financial security for the future.
No change in interest rates of small savings schemes
Not only GPF, the government has also not made any change in the interest rates of small savings schemes for the July-September quarter. This is a positive sign for investors who want assured returns on their savings.
Senior Citizen Savings Scheme (SCSS):- It will continue to get 8.2% interest, which is a very attractive option for senior citizens.
National Savings Certificate (NSC):- It will continue to get 7.7% interest, which is popular for medium-term savings.
The rates of these schemes offer better returns than the fixed deposit rates offered by many banks, making them attractive options for long-term investment. In a period of market volatility, these schemes provide security and stability to investors.
What does this rate mean for investors
This decision to keep interest rates stable comes at a time when there is a certain uncertainty in the financial market. After the recent repo rate cut, many banks have also reduced their fixed deposit rates. In such a scenario, investing in the Government Provident Fund remains highly profitable in terms of safe and stable returns.