Interest rate on Public Provident Fund and National Savings Certificate have been kept unchanged
NEW DELHI : A day ahead of Lok Sabha polls announcement, the government revised interest rates on some small savings schemes by 10-20 basis points as per the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund.
The revised interest rates will be effective from Apr 1, a finance ministry release said.
Interest rates for both 1-year and 2-year time deposits have been hiked to 8.4% from 8.2% each, while interest rate for 3-year time deposit has been raised to 8.4% from 8.3%, it said.
The government has decided to keep interest rates on 5-year and 10-year National Savings Certificate unchanged at 8.5% and 8.8%, respectively. Interest rate on Public Provident Fund has also been kept unchanged at 8.7%, the release said. The necessary notifications will be issues separately in this regard in due course, it said.
The rate of interest on small savings schemes has been aligned with G-Sec rates of similar maturity with a spread of 25 bps with two exceptions of a spread of 50 bps on 10-year National Savings Certificate and a 100 bps spread on Senior Citizens Savings Scheme.
The rate on five-year Monthly Income Scheme (MIS) remains the same at 8.4 per cent. The savings deposit rates are kept unchanged at 4 per cent.
The Finance Ministry’s decision comes on the eve of the announcement of general elections schedule by the Election Commission. The model code of conduct comes into play after Lok Sabha elections announcement. -Cogencis