The government today reduced the interest rate on Public Provident Fund (PPF), 5-year and 10-year National Savings Certificates (NSC) by 0.1 per cent each, with effect from April 1, 2013.
Interest rate on Public Provident Fund (PPF) has been cut from 8.8 % to 8.7% while the interest rate on 5-year NSC has been cut from 8.6 % to 8.5 % and that of 10-year NSC has been cut from 8.9 % to 8.8 % said the Finance Ministry.
Interest rates of Post Office Time Deposits and Recurring Deposits have also been reduced.
The interest rate on Senior citizens savings scheme (SCSS) has also been reduced by 10 basis points from 9.3 % to 9.2%.
However, the interest rate on savings deposit and one-year term deposit remains unchanged at 4% and 8.2%, respectively.
Based on the decisions taken by the government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified every financial year, before April 1 of that year.
New Interest Rates on Government Savings Schemes (Effective from 1st April 2013) :
|Scheme||Rate of Interest
|Rate of Interest
|1 Year Time Deposit||8.2||8.2|
|2 Year Time Deposit||8.3||8.2|
|3 Year Time Deposit||8.4||8.3|
|5 Year Time Deposit||8.5||8.4|
|5 Year Recurring Deposit||8.4||8.3|
|5 Year SCSS||9.3||9.2|
|5 Year MIS||8.5||8.4|
|5 Year NSC||8.6||8.5|
|10 Year NSC||8.9||8.8|
Incoming search terms:
- PPF and NSC rate cuts today