Current G Fund Interest Rate: How It’s Set

The G Fund’s current interest rate is 4.125% for November 2026, according to the latest rate published by the Federal Retirement Thrift Investment Board. The rate can change each month, so check the official TSP rate page for the most current figure before relying on it.

How the G Fund rate is set

The Government Securities Investment Fund, commonly called the G Fund, is one of the investment options in the federal Thrift Savings Plan (TSP). Its return is based on the weighted average yield of outstanding Treasury securities with four or more years to maturity. The TSP calculates and announces a new G Fund interest rate each month.

This method is unusual because the G Fund invests in special-issue Treasury securities available only to the TSP, while its rate is linked to a broader range of marketable Treasury securities. The special securities are designed to provide the G Fund’s return without exposing participants to the market-price fluctuations that affect ordinary longer-term bonds when interest rates move.

The monthly rate is an annualized rate used to determine daily earnings. It is not a promise that the same rate will apply for the rest of the year. The annual return shown for an entire calendar year reflects the rates in effect during that year and the compounding of investment earnings.

What the rate means for your balance

The G Fund’s return is credited to the account as investment earnings. For a rough illustration, if a balance of $10,000 earned 4.125% for a full year with no contributions, withdrawals, or rate changes, simple interest would be $412.50. Actual credited results differ because the rate can change monthly and earnings compound over time.

For another rough comparison, a 4.125% annualized rate corresponds to about 0.34375% per month when divided by 12. On a $10,000 balance, that is approximately $34.38 for one month before considering daily accrual and the exact calculation used. Do not treat either illustration as a forecast or a guaranteed annual return.

• Your balance and the number of days invested affect the earnings credited.
• Monthly rate changes affect the return over longer periods.
• Contributions and withdrawals change the amount exposed to the rate.
• Past annual returns do not establish the rate that will apply next month or next year.

G Fund risks and protections

The G Fund is generally described as having no risk of loss from changes in market prices, and it has not had a negative annual return since its inception. That does not mean its rate is fixed or that its return will always keep pace with inflation. A changing rate can be lower than the return available from other investments, and inflation can reduce the purchasing power of earnings.

Its design also differs from a conventional money-market fund or a publicly traded Treasury bond fund. The G Fund’s securities do not trade on a public market, and participants do not experience the daily bond-price declines that can occur in funds holding longer-term bonds. The special-issue securities are backed by the full faith and credit of the U.S. government, as described by the TSP.

“No market-price loss” is not the same as “no investment trade-off.” A stable account value can be useful for some portfolio purposes, but the G Fund’s return changes over time and may lag other investments in certain periods. The right interpretation depends on a person’s time horizon, risk tolerance, and broader financial circumstances; the rate alone cannot determine an allocation.

Comparing the G Fund with other TSP funds

The G Fund is distinct from the TSP’s stock and bond funds. The C, S, and I Funds invest in stock markets, so their values can rise and fall with market prices. The F Fund invests in bonds whose market prices can move when interest rates and other bond-market conditions change. The G Fund does not have that same market-price exposure, but it also does not participate in stock-market gains.

Lifecycle (L) Funds combine several TSP funds, including the G Fund, in allocations that change over time. Their returns reflect the performance of the underlying funds and can fluctuate. The G Fund rate should therefore not be compared with a stock-fund return as if the two investments had the same risks or objectives. Annualized returns are most meaningful when you also consider the period measured, volatility, and how the investment works.

Where to verify the latest rate

Use the TSP’s official investment-performance information to confirm the rate for the current month. Look for the G Fund’s monthly rate, and note the effective month or date; rates published by third-party websites may be delayed or may refer to a different period.

The TSP also publishes historical rates and annual performance information. These are useful for checking how the G Fund has behaved over time, but historical figures do not tell you what rate will be announced next. If you are reviewing an account statement, distinguish the current monthly rate from the return over a year-to-date or multi-year period.

Frequently Asked Questions

Does the G Fund rate change every month?
Yes. The TSP sets a new annualized G Fund interest rate each month using its Treasury-yield formula. The rate for one month should not be assumed to continue for the next.

Is the G Fund rate guaranteed for a year?
No. The announced rate applies to a month, not a full year. Annual G Fund performance is calculated from the returns credited during the months of that year.

Can the G Fund lose money?
The G Fund is structured to avoid losses from changes in market prices, and it has not recorded a negative annual return. Its rate can still change, and inflation can reduce the purchasing power of an account balance.

Is the G Fund the same as a Treasury bond fund?
No. The G Fund holds special-issue Treasury securities for TSP participants and is not exposed to the daily market-price changes that affect publicly traded Treasury bonds and bond funds.

Where can I find the current G Fund rate?
Check the official TSP website’s investment-performance or G Fund rate information. Confirm the month shown, because rates update monthly.

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