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General Provident Fund: Meaning, Eligibility Criteria, & Features

What Is a General Provident Fund?

Who Is Eligible to Open a GPF Account?

What Are the Key Features of the General Provident Fund?

How to Open a General Provident Fund Account?

What Is the Contribution Amount to a GPF Account?

What Is a GPF Advance?

What is the Maturity Period and Rules for Withdrawal Process of GPF?

What Are the Differences Between EPF, GPF and PPF?

The differences between GPF, EPF and PPF are represented in a tabular format below:

Parameters

General Provident Fund

Public Provident Fund

Employees Provident Fund

Eligibility criteria

Only for government employees

For every Indian resident

For employees working in an organised sector

Contribution limit

Minimum contribution - 6% of total salary

Maximum contribution – 100% of the total salary

Minimum contribution – Yearly payment of  ₹ 500

Maximum contribution – Yearly payment of ₹ 1.5 lakh

Minimum contribution – 12% of your salary

Rate of interest

7.1%

7.1%

8.15%

Maturity period

Till the time of retirement

15 years

Till the completion of 58 years

Loan facility

Can obtain a loan anytime within your service period

You can avail a loan only on the 6th and 3rd fiscal year from the date of opening an account

You can withdraw partially and cannot avail any loan against EPF

Premature closure of an account

Upon suspension or leaving government service

After completing 5 years of opening an account.

Besides, being an account holder, you can close your PPF account if your parents, dependent children, or spouse suffers a severe illness. Moreover, you can also close your PPF account to use funds to finance higher studies.

Within 2 months of unemployment

To conclude, the General Provident Fund is a compulsory savings scheme for every government employee. This scheme will help you achieve financial independence during your retirement by providing assured returns and other benefits against the contribution made towards your GPF account.

Frequently Asked Questions