interest rate on ppf and other schemes in 2013

Interest Rate Effective 1st April’ 2013

Government has reduce interest rates on the popular small saving schemes by 0.10 %. The new rates will be effective from 1st April’ 2013, and would applicable for fiscal year 2013-2014. From year 2012, Government had decided to link the small savings returns with the market rate. The new rates for small saving schemes are announced at the beginning of financial year.

The rate of interest on PPF (Public Provident Fund) has been cut down from the previous 8.8 % to 8.7 % now.  The other popular scheme with investors is NSC (National saving Certificates). Effective 1st April’ 2013, you will earn 8.8% on NSC with maturity period of 10 years, and 8.5% on NSC with maturity period of 5 years. Till now the rates were 8.9% and 8.6% respectively.

Rate of interest on Senior Citizens Savings Scheme (SCSS) will  be 9.2 %, down from the earlier 9.3 %.

However, rates on savings deposit schemes and on fixed deposit of up to one year run by post offices has been kept unchanged at 4 % and 8.2 %, respectively. MIS (Monthly Income Schemes) of 5 year maturity will earn an interest of 8.4 %.

The finance ministry said G-Sec (Government securities) rates have fallen more sharply than reduction in small saving instruments and the Government is still trying to protect small investors. The average yield has been 8.2 % in the 10 yr Govt Bonds.