Interest rates on PPF, NSC slashed
The Finance Ministry to cut interest rates on PPF (Public Provident Fund) by 0.1 per cent to 8.7 per cent.
Interest rate on five-year NSC (National Savings Certificate) was also slashed to 8.5 per cent from 8.6 per cent and on 10-year NSC to 8.8 per cent from 8.9 per cent.
However, interest rates on savings deposit and one-year time deposit was left unchanged.
The revised rates will be effective from April 1, 2013.
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 1st April of that year.
A Public Provident Fund (PPF) account is the most tax efficient vehicle launched by government of India. Investments made under this are deductible under Section 80C and interest earned is also tax-free.
|REVISION OF INTEREST RATES|
|Scheme||Rate of Interest w.e.f. 01.04.2012||Rate of Interest w.e.f. 01.04.2013|
|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|