Revision of interest rates for small savings schemes

No.6-1.2011-NS.II(Pt.)

Ministry of Finance

Department of Economic Affairs

(Budget Division)

New Delhi, the 26th March, 2012

OFFICE MEMORANDUM

Sub: Revision of interest rates for small savings schemes.

The undersigned is directed to refer to Ministry of Finance's O.M. of even number dated 11th November, 2011, vide which the various decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned.

2. One of the decisions of the Government based on the recommendations of the Committee relates to revision of interest rates every financial year, to be notified before 1st April of that year. Accordingly, the rates 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 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

3. Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately.

4. This has the approval of Finance Minister.

sd/-

(Shaktikanta Das)

Addl. Secretary to the Govt. of India

Source: www.finmin.nic.in
http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/InterestRate_SmallSaving_26032012.pdf