- News |
-
- Featured
-
Canada’s privacy commissioner launches investigation over the use..
As the years pass by, technology also widens, and more and more are being discovered. From simple gadgets..
- Business |
-
- Featured
-
Be an informer to I-T dept; earn up..
Sharing "specific information" with the income tax department about any benami..
- Tech & Industry |
-
- Featured
-
Gravitational wave event likely signaled birth of black..
The merger of two neutron stars that generated gravitational waves detected last year may have led to the birth..
- Entertainment |
-
- Topics
- Malayalam Film
- Media
- Music
- Youth
-
- Featured
-
Shawn Mendes Released Highly Anticipated Self-Titled Album Today
Los Angeles, CA : Multi-Platinum singer/songwriter Shawn Mendes released his highly anticipated self-titled third album today, via Island Records. Get..
-
- New Products |
-
- Topics
- General
-
- Featured
-
ZOTAC Introduces Its GeForce GTX 960 series graphics..
Dubai- ZOTAC International, a leading innovator and manufacturer of graphic cards and mini-
-
- Education |
-
- Topics
- Campus News
-
- Featured
-
ITM University, Gurgaon Student Palash Chhabra Represents Varsity..
New Delhi: Palash Chhabra, a student of ITM University,..
-
- Health |
-
- Topics
- Medical News
-
- Featured
-
Maharshi Shushruta, The Great Grandfather of Surgery!
by Ayurvedacharya Dr.Hitesh Jani Dr.Hitesh Jani
-
- Tourism |
-
- Topics
- Travel
- Food&Beverages
- Hospitality
-
- Featured
-
“Keraliya Ayurveda is Credible and Authentic”
Irina Gurjeva Irina Gurjeva is not just another vacationer in..
-
- Sports |
- Editor's column |
- Magazine |
Interest rates on small savings schemes hiked by up to 0.5%
Published on March 26, 2012
New Delhi : The government on Monday raised interest rates on post office-operated small savings like Monthly Income Scheme (MIS) and Public Provident Fund (PPF) by up to 0.5 per cent, making them more attractive to investors.
Interest rates on time deposits of one and two years have been increased by 0.5 per cent each to 8.2 per cent and 8.3 per cent respectively, while rates for popular MIS has been hiked by 0.3 per cent to 8.5 per cent, an official release said.
Interest rate on PPF has been increased by 0.2 per cent to 8.8 per cent.
The new rates will be effective from 1st April, 2012 and will remain valid during 2012-13.
There has been no change in the savings deposit rate which has been retained at 4 per cent.
The hike in interest rates on small savings schemes is based on the recommendations of the Shyamala Gopinath Committee which had suggested linking of interest rates on small savings with that of the market.
The panel had also suggested that the interest rates on small savings schemes should be revised annually.
The revision in the interest rates will help in maintaining the attractiveness of the small savings schemes vis-a-vis fixed deposit schemes operated by banks.
The government as part of economic liberalisation process had freed the interest rates on banks deposits giving freedom to lenders to fix rates depending upon the asset-liability position, but continued to fix rates for small savings schemes.
Accordingly, the rate of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in in the schemes, shall be as under:
| Scheme | Rate of Interest w.e.f. 1.12.2011 | Rate of Interest w.e.f. 1.4.2012 |
| Savings Deposit | 4.0 | 4.0 |
| 1 year Time Deposit | 7.7 | 8.2 |
| 2 year Time Deposit | 7.8 | 8.3 |
| 3 year Time Deposit | 8.0 | 8.4 |
| 5 year Time Deposit | 8.3 | 8.5 |
| 5 year Recurring Deposit | 8.0 | 8.4 |
| 5 year SCSS | 9.0 | 9.3 |
| 5 year MIS | 8.2 | 8.5 |
| 5 year NSC | 8.4 | 8.6 |
| 10 year NSC | 8.7 | 8.9 |
| PPF | 8.6 | 8.8 |
Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately.
