Interest rates hiked on small savings schemes; NSC & PPF remain unchanged

New Delhi, March 5 (KNN) Finance Ministry has raised interest rates on some of the small savings scheme by up to 0.2 per cent; however, there is no change in interest rates on five years National Saving Certificates (NSC) and Public Provident Fund (PPF).

The interest rate on popular PPF has been kept unchanged at 8.7 per cent. Savings deposits of up to two years will fetch 8.4 per cent against 8.2 per cent earlier. 

The new rates will be applicable from April-1.

These recommendations are based on the Shyamala Gopinath Committee.

Any fresh deposit or accretion in the existing ones on or after April-1 will enjoy the benefit of new rates.

According to the Finance Ministry statement, interest rates on 1, 2, and 3-year term deposits will now be 8.4 per cent as against 8.2, 8.2 and 8.3 per cent respectively.

Similarly, 5-year term deposits will now have 8.5 per cent rate of interest against 8.4 per cent currently.

Interest rate on 5 years recurring has also been revised. Investment in 10-year NSC on or after April-1 will earn you 8.8 per cent rate as against 8.7 per cent.

As per the recommendations, the interest rate is revised every financial year and notified before April-1.

The interest rate of General Provident Fund (GPF) which is applicable for government employees has been retained at 8.7 per cent for 2014-15.

The Employees Provident Fund Organization will pay interest rate of 8.75 per cent on Provident Fund deposits for 2013-14. (KNN/SD)