PPF, NSC to earn lower interest from April 1- Business News
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PPF, NSC to earn lower interest from April 1

The government, on the recommendations of the Shyamala Gopinath Committee, has benchmarked interest rates on small savings schemes to yields on government securities of similar tenure, from April 2012.

  • March 25, 2013  
  • |  
  • UPDATED   16:31 IST

Small savings schemes including Public Provident Fund (PPF) will earn lower interest from April 1 2013, the government announced on Monday.

The rate of interest across most schemes has been lowered by 0.1 percentage point. PPF which earned an annual interest of 8.8% in 2012-13, will now offer 8.7% from the new financial year.

Senior Citizen Savings Scheme would offer 9.2% against 9.3% earlier, 10-year National Saving Certificate (NSC) would give 8.8% against 8.9% and 5-year NSC would return 8.5% instead of 8.6% last year.

However, interest rate on savings account and 1-year fixed deposits remain unchanged at 4% and 8.2% respectively.

Small savings schemes are central government schemes operated through a network of post-offices and nationalized banks.

The government, on the recommendations of the Shyamala Gopinath Committee, has benchmarked interest rates on Small Savings schemes to yields on government securities of similar tenure, from April 2012.

The rates are revised once every year on 1st of April.

SchemeRate of Interest w.e.f. 01.04.2012Rate of Interest w.e.f. 01.04.2013
Savings Deposit4.04.0
1 Year Time Deposit8.28.2
2 Year Time Deposit8.38.2
3 Year Time Deposit8.48.3
5 Year Time Deposit8.58.4
5 Year Recurring Deposit8.48.3
5 Year SCSS 9.3 9.2
5 Year MIS 8.5 8.4
5 Year NSC 8.6 8.5
10 Year NSC8.98.8
PPF8.88.7