interest rate on various  savings deposits

Interest Rate on Saving Schemes

The Government of India on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF),  has revised the Interest Rates for Small Savings Schemes for the Financial Year 2014-15.

With the approval of the Finance Minister, the rates of interest on various small savings schemes for the FY 2014-2015 effective from 01.04.2014, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :

Scheme Name Rate of Interest w.e.f. 1-Apr-2013 Rate of Interest w.e.f. 1-Apr-2014 Change over last year
Savings Deposit 4.00% 4.00% NIL
1 Year Time Deposit 8.20% 8.40% 0.20%
2 Year Time Deposit 8.20% 8.40% 0.20%
3 Year Time Deposit 8.30% 8.40% 0.10%
5 Year Time Deposit 8.40% 8.50% 0.10%
5 Year Recurring Deposit 8.30% 8.40% 0.10%
5 Year Senior Citizens Savings Scheme (SCSS) 9.20% 9.20% NIL
5 Year Monthly Income Scheme (MIS) 8.40% 8.40% NIL
5 Year NSC 8.50% 8.50% NIL
10 Year NSC 8.80% 8.80% NIL
PPF 8.70% 8.70% NIL

PPF rate remains unchanged at 8.7%. While 5 year NSC and 10 year NSC interest rates also remains unchanged at 8.5% and 8.8 % respectively.

The revised rates apply only to the new accounts opened during the respective year (except PPF where the new rate is applied on the outstanding account balance). For existing accounts the contracted rates remain unchanged until maturity.