The interest rate of Public Provident Fund (PPF) has been
lowered from 8.8 per cent to 8.7 per cent with effect from April 1, said a
Finance Ministry statement. However, the rates on savings deposit schemes
and fixed depositsup to one year operated by the post offices have been
kept unchanged at 4 per cent and 8.2 per cent, respectively.
Further, Monthly Income Schemes (MIS) of 5-year
maturity will earn an interest of 8.4 per cent.
The National Savings Certificates (NSC) having
maturity of five and 10 yearswill now attract 8.5 per
cent and 8.8 per cent interest respectively, down 0.10 per cent each.
The interest rates would be applicable for the entire 2013-14 fiscal.
The rate for senior citizens savings scheme (SCSS) has
been fixed at 9.2 per cent, down from 9.3 per cent.
The revision in interest rates follows a decision taken
by government last year to link the small savings returns with the market rate.
The new rates are required to be announced at the beginning of a financial
year.
The decision was in line with the recommendations of
Shyamala Gopinath Committee, which had suggested that returns should be in sync
with market rates determined by the returns offered by other securities.
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