Government hikes interest rate on SDS, SPF, GPF to 8.8% for 2012-13

Interest rates have been increased on the following Schemes for the year 2012-13 to 8.8% from 8.6% currently:

• Special Deposit Scheme (SDS)
• State Provident Fund (SPF)
• General Provident Fund (GPF)

New rate will be applicable from April, 1, 2012.

Rate of interest on GPF is generally fixed after taking into consideration the average secondary market yields on government securities of similar maturity.

The benefit of increased interest rate will be available to subscribers of:

• All India Services Provident Fund
• Contributory Provident Fund (India)
• State Railway Provident Fund
• General Provident Fund (Defence Services).
• Contributors to Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen’s Provident Fund, Indian Naval Dockyard Workmen’s Provident Fund, Defence Services Officers Provident Fund and Armed Forces Personnel Provident Fund will also benefit from the move.

What is SDS?

• SDS is a scheme in which the Non-Government Provident Funds like Employees’ Provident Fund Organization (EPFO) invest. At present, EPFO funds of about Rs 55,000 crore are parked in the SDS.

Month: Current Affairs - May, 2012

Category: Government Schemes Current Affairs