March 26, 2013
Kalaivaraikalai
Millions of small savers will earn lesser interest on their
meagre savings from April 1 at a time when inflation is still high.
Contributors to small savings schemes, like public provident fund (PPF) will be
paid 10 basis points (0.1 percent) less interest as it is aligned to returns in
government securities in late 2011. The small savings rates are revised every
year on April 1 as a result.
A finance ministry statement on Monday said the popular PPF will fetch 8.7 per
cent instead of 8.8 per cent. One can invest up to Rs 1 lakh in PPF and both
the principal and interest are exempted from income-tax.
Postal deposit and one-year deposit schemes will continue to get 4 per cent and 8.2 per cent interest rate, respectively. All other schemes will fetch 0.1 per cent less in the new financial year (FY 2013-14).
The five-year NSC (National Savings Certificate) will have an interest rate of 8.5 per cent instead of 8.6 per cent and 10-year NSC 8.8 per cent instead of 8.9 per cent.The interest rate on five-year postal recurring deposits has been lowered to 8.4 per cent.
Senior citizens savings scheme (SCSS) will offer the highest rate at 9.2 per cent, but 0.1 per cent less when compared with current year ending on March 31.
Prior to the alignment of interest rates with government securities, the small savings schemes including PPF offered a flat 8 per cent tax-free interest rates. Small savings schemes are designed to provide safe and attractive investment options to the public and also to mobilise resources for development. These schemes are operated through about 1.54 lakh post offices in the country. Public provident fund is also operated through about 8,000 branches of public sector banks in addition to post offices. Deposit schems for retiring employees are oprerated through selected branches of public sector banks only.
Monthly income schemes (MIS) of five-year maturity will earn an interest of 8.4 per cent instead of 8.5 per cent.
Postal deposit and one-year deposit schemes will continue to get 4 per cent and 8.2 per cent interest rate, respectively. All other schemes will fetch 0.1 per cent less in the new financial year (FY 2013-14).
The five-year NSC (National Savings Certificate) will have an interest rate of 8.5 per cent instead of 8.6 per cent and 10-year NSC 8.8 per cent instead of 8.9 per cent.The interest rate on five-year postal recurring deposits has been lowered to 8.4 per cent.
Senior citizens savings scheme (SCSS) will offer the highest rate at 9.2 per cent, but 0.1 per cent less when compared with current year ending on March 31.
Prior to the alignment of interest rates with government securities, the small savings schemes including PPF offered a flat 8 per cent tax-free interest rates. Small savings schemes are designed to provide safe and attractive investment options to the public and also to mobilise resources for development. These schemes are operated through about 1.54 lakh post offices in the country. Public provident fund is also operated through about 8,000 branches of public sector banks in addition to post offices. Deposit schems for retiring employees are oprerated through selected branches of public sector banks only.
Monthly income schemes (MIS) of five-year maturity will earn an interest of 8.4 per cent instead of 8.5 per cent.
Scheme
|
Rate of Interest
Existing
|
Rate of Interest
Revised w.e.f. 01.04.2013
|
1
|
2
|
3
|
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
|
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
|
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