If you are a Government employee, you can open a General Provident Fund (GFP) account. It is one of the three types of Provident Fund account – Public Provident Fund (PPF), General Provident Fund (GPF) and Employees Provident Fund (EPF). However, the terms and conditions, interest rates and rules of these three may vary.
So, how is GFP different from EPF and PPF? What is the interest rate of GPF? How to open a GPF account? And, what are the GPF withdrawal rules? Read on to find out!
General Provident Fund is a type of Public Provident Fund (PPF) account beneficial for every government employee. It enables government individuals to preserve a part of their salary in the General Provident Fund. The entire amount collected throughout the employment period is paid when the employee retires.
General Provident Fund facilitates government employees in many ways. Some of their essential features are:
A person desiring to open a General Provident Fund account must go through these vital guidelines. They are:
The interest rate of the General Provident Fund varies from year to year. The following table shows rates of interest over the last 5 years:
Financial Year | Interest Rate |
2017-2018 | 7.9% (April 2017-June 2017) 7.8% (July 2017-September 2017) 7.8% (September 2017-December 2017) 7.6% (January 2018-March 2018) |
2018-2019 | 7.6% (April 2018-September 2018) 6% (October 2018-March 2019) |
2019-2020 | 8% (April 2019-June 2019) 7.9% (July 2019-March 2020) |
2020-2021 | 7.10% |
2021-2022 | 7.10% |
An individual who has met all of these following conditions is suitable for opening a General Provident Fund account:
Anyone can open a GPF account effortlessly. The Accountant General (AG) office is in charge of this account. Firstly, the person desiring to open an account has to fill up a specified form and submit it to the AG office. Later on, the office will provide them with their account number.
The office will further inform them about their monthly salary deductions to (Drawing and Disbursing Officer) DDO. Moreover, a statement of debits and credits, a GPF balance sheet, and accrued interest are sent to the employee at the end of the financial year.
The employees are free to apply to withdraw money from GPF online. This money will be credited to their respective bank accounts without any hassle. Furthermore, government employees can take away their money based on their years of service under the renewed provisions. This process will not require any further approval.
Here are some following steps you should follow while checking your GPF statement online:
Visit the official website of EPFO and go to its homepage.
On top menu bar, click on the tab ‘Services’. A dropdown menu will appear.
From the dropdown menu, click on ‘For Employees’.
Scroll down. Under the ‘Services’ category, select ‘Member Passbook’. You will be directed to a new page.
Enter your UAN and password.
Now, you can see your PF account’s details. You can either download the GPF status or simply view it.
Also Read: Tax Implications Of Provident Fund & How To Save Tax
The main differences between General Provident Fund and Employees’ Provident Fund are as follows:
Aspects | GPF | EPF |
Interest rate | 7.1% | 8.1% |
Eligibility | Only government employees are eligible. | Only private sector employees are eligible. |
Period of maturity | At the time of retirement | Up to the age of 58 years |
Early cessation | On leaving the government job. | If unemployed for 2 months. |
Limit of deposit | Minimum deposit amount should be 6% of the employee’s salary. | Minimum deposit amount should be 12% of the employee’s salary. |
Also Read: What Is A Voluntary Provident Fund And How Is It Different from EPF And PPF?
GPF is a beneficial savings scheme organised by the Government for government employees. There is no telling when an individual will require money. So, it is better to stay in a safe zone. GPF helps employees accomplish their financial goals. It can be for family emergencies, marriage or even medical purposes.
Ans: The full form of GPF is General Provident Fund.
Ans: Interest received during GPF is entirely tax-free and, no tax is imposed while withdrawing it.
Ans: General Provident Fund deducts 6% money from the basic salary of an individual.
Ans: An extra sum of money is added to the amount and credited to the account of his/her nominee.
Ans: No. Because the General Provident Fund scheme is only for the government employees.
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