Fintotal News Analysis | PPF, NSC Rates Lowered for 2013-14
PPF, NSC Rates Lowered for 2013-14
Ruby Jacob, 25 Mar 2013

PPF, NSC and some other Postal Small Savings Schemes will earn a tad less in 2013-14. Interest rates have been brought down by 0.1% on many Postal Savings Schemes.

Public Provident Fund (PPF) deposit which earned at a rate of 8.8% per annum in 2012-13 will earn at the rate of 8.7% in 2013-14.

10-year National Saving Certificate (NSC) will earn at the rate of 8.8% the next financial year lesser than 8.9% in the current year whereas 5-year NSC will be paid an interest of 8.5%.

Senior Citizens Savings Scheme (SCSS) will earn an interest of 9.2% in 2013-14 instead of the current rate of 9.3%.

New rates will be effective from 1 April 2013. Interest rates of other Post Office deposits like savings deposit and 1-year term deposit have not been changed.

Scheme

Existing rate

New Rate from 01 April 2013

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%

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%

PPF

8.8%

8.7%

Interest rate of Postal Savings Schemes like PPF, NSC, SCSS, etc is fixed once every year before the start of the financial year by the Finance Ministry. Last year interest rate of these schemes was linked to rate of 10-year Government bonds. Rate of Government bonds have fallen much sharply compared to the cut in PPF, NSC rates.

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