Finance ministry has announced revised interest rates on public provident fund, national savings certificates and other small savings schemes. These interest rates shall be applicable for financial year 2013-2014. As we had noted earlier, interest rates of such schemes are now linked to market yields on government securities of comparable maturities and shall be revised every financial year.
Overall there has been a reduction in interest rates by 10 basis points (100 basis points is 1 percentage point) for all savings schemes except for saving deposits on which interest rates continues to be 4% and 1 year time deposits (8.2%). Interest rates on PPF from April 2013 shall be 8.7% p.a. as against 8.8% p.a. earlier.
The table below summarizes the changes in interest rates:
Scheme Existing interest rate Interest rate w.e.f 1st April 2013
|Name of the Scheme||Existing Interest Rate||Interest Rate W.E.F from 1 st April 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|
Overall there has been negligible change in the interest rates as compared to 2012-13.