Slashed rate of Interest PPF NSC MIS SCSS etc

INTEREST RATE PPF ,NSC, SCSS, MIS ,POTD REDUCED 01.04.2013

Govt. of India has announced the reduction in rates of PPF, NSC and senior citizen saving schemes by .10%. These reduced rates will be effective from 1^st April 2013. However Post office small saving scheme and saving account  and post office fixed deposit schemes for 1 yr will carry the interest rate 4% and 8.2% these are intact.

Schemes which affected                       Current rate                  Revised rate

                                                              Till 31.03.2013            w.e.f. 01.04.2013

PPF                                                           8.8%                              8.7%

NSC (5years)                                            8.6%                              8.5%

NSC (10 years)                                         8.9%                              8.8%

Post office Deposits

       2 Year TD                                          8.3%                              8.2%

       3 Year TD                                          8.4%                              8.3%

       5 Year TD                                          8.5%                              8.4%

       5 Year TD                                          8.4%                              8.3%

SCSS                                                        9.3%                              9.2%

MIS                                                           8.5%                              8.4%

These slash in interest rates are decisions taken by the Government on the basis of recommendations given by 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, Which suggested that returns should be in sync with market rates determined by the returns offered by other securities. If you wish to lend at lower rate can not provide interest on deposits at higher rate these should be in sync.

Montek Singh Ahluwalia deputy chairmen of planning commission justified the step taken by govt. on stating in actual terms inflation has been lowered down from past two years.