Small Saving schemes such as Public Provident Fund (PPF) and National Savings Certificates (NSC) play a crucial role in Indian/s financial planning.
Historically they have been a dependable source of fixed income. While some of small savings schemes offer additional benefits such as income tax savings, opportunity to earn compounded returns and so on; they all have so far been offering some or the other additional incentive to investors in order to inculcate the habit of saving among them.
However, now the income from such small savings scheme is set to become more volatile. Following the recommendations of Ms. Shyamala Gopinath Committee, the interest rate on small savings schemes too would be linked to market rates & interest rates would be accordingly revised prior to beginning of a financial year hereon.
As a result, rates for FY 2013-14 would be revised from April 1, 2013.
Scheme Name
|
Rate of Interest
w.e.f. 1-4-2012
|
Rate of Interest
w.e.f. 1-4-2013
|
Savings Deposit
|
4.0
|
4.0
|
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
|
PPF
|
8.8
|
8.7
|
w.e.f- With Effect from
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