Advantages of GPF
- Regular Savings: Government employees through GPF can save their monthly salary regularly which helps them easy to achieve their financial goals.
- Safe Investment: GPF is regulated by Government so it is a safe investment option. The interest rates on GPF are fixed by the government and are usually higher than the interest rates offered by banks.
- Tax Benefits: The employees who are having their salaries deducted from GPF can enjoy tax benefits under section 80 C.
- Pension: The GPF scheme helps government employees create a corpus that they can use after retirement.
- Loans and Withdrawals: With the option of GPF part final withdrawal, employees can withdraw their fund amount partially for specific reasons like education, and medication which need not be repaid back. And they can also avail of loans based on their GPF fund.
- Portable: The GPF account can be transferred from one employer to another if the employee moves from one government job to another. It gets continued on the same UAN number. (Universal Account Number).
GPF Full Form
GPF stands for General Provident Fund. People working as permanent employees in Private and Government companies will get to know about Provident Fund. But there are many types of Provident Funds. Now we are going to learn about General provident Fund which is given to employees who work in Government sectors in India. It is a retirement savings scheme for employees who work in government sectors in India. GPF is a defined contribution scheme. In GPF both the employee and the employer (the company in which the employee is working) contribute to the fund during the employee’s working years. When the employee retired or resigned from his job then he can claim the Provident Fund amount. The GPF offers attractive interest rates and the employees can withdraw the amount partially and can apply for loans.