Revised Interest Rates on Savings Schemes and Fixed Deposits

Interest RatesSmall investments occupy special importance in personal financial planning. Confidence in their security and guarantee in the returns on the investments is the main reason for it. Some investments may be for getting income tax exemption. Many people like to invest in Public Provident Fund (PPF) and National Savings Certificates (NSC). Over a period of time, they encourage for long term savings in future.

However … from now on, the return gets reduced to some extent. From the next financial year i.e., from April 1, 2013, there are slight changes in the interest rates in these schemes. Basing on Shyamala – Gopinath Committee recommendations, the interest rates on these schemes will be periodically reviewed and changed according to the changes in the interest rates in the market. The rate of interest will be announced at the beginning of the financial year.

Details of Changes in Interest Rates from 1st April, 2013

Scheme
Old Interest Rate
(2012-13)
New Interest Rate
(2013-14)
Savings Account
4.0%
4.0%
1 year Fixed Deposit
8.2%
8.2%
2 years Fixed Deposit
8.3%
8.2%
3 years Fixed Deposit
8.4%
8.3%
5 years Fixed Deposit
8.5%
8.4%
5 years Recurring Deposit
8.4%
8.3%
5 Years Sr. Citizen Savings Scheme
9.3%
9.2%
5 years Monthly Income Scheme
8.5%
8.4%
5 years National Savings Scheme
8.6%
8.5%
10 years National Savings Scheme
8.9%
8.8%
P.P.F
8.8%
8.7%

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