RBI
has released a Notification on interest rates on two popular Tax saving schemes wef
01.04.2014. These schemes are Public Provident Fund Scheme 1968 and
Senior Citizens Saving Scheme 2004.PPF is most popular tax saving scheme among
small investor as interest from PPF account is exempted from income tax.SCSS
scheme is useful for sr citizens either having income less than exemption limit
or falling under first slab of income tax rates.
Notification
of interest Rates on these schemes is given below.
PUBLIC
PROVIDENT FUND SCHEME, 1968 (PPF SCHEME, 1968) AND SENIOR CITIZENS SAVINGS
SCHEME, 2004 (SCSS, 2004) - REVISION OF INTEREST RATES
CIRCULAR DGBA.CDD.
NO. 5342 /15.02.001/2013-14, DATED 21-3-2014
Please
refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest
rates on small savings schemes, wherein it was indicated that as per
Government's decision on revision of interest on small savings schemes, the
interest rates on various small savings schemes for every financial year will
be notified by the Government before April 1st of that year.
The
Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II
dated 4thMarch 2014, advised the rate of interest on various small savings
schemes for the financial year 2014-15. Accordingly, the rates of interest on
PPF, 1968 and SCSS, 2004 for the financial year 2014-15, effective from April
01, 2014, on the basis of the interest compounding/payment built-in in the
schemes, will be as under:
|
Scheme
|
Rate of Interest w.e.f. 01.04.2013
|
Rate of Interest w.e.f. 01.04.2014
|
|
5 Year SCSS, 2004
|
9.2% p.a.
|
9.2% p.a.
|
|
PPF, 1968
|
8.7% p.a.
|
8.7% p.a.
|
The contents of this circular
may be brought to the notice of the branches of your bank operating the PPF,
1968 and SCSS, 2004 schemes. These should also be displayed on the notice
boards of your branches for information of the PPF, 1968 & SCSS, 2004 subscribers.
Interest Rate chart for
all Popular schemes wef 01.04.2014 is given below
|
Scheme
|
Rate
of interest
w.e.f.01.04.2013
|
Rate
of Interest
w.e.f.
01.04.2014
|
|
1.
|
2.
|
3.
|
|
Savings
Deposit
|
4.0
|
4.0
|
|
1
Year Time Deposit
|
8.2
|
8.4
|
|
2
Year Time Deposit
|
8.2
|
8.4
|
|
3
Year Time Deposit
|
8.3
|
8.4
|
|
5
Year Time Deposit
|
8.4
|
8.5
|
|
5
Year Recurring
Deposit
|
8.3
|
8.4
|
|
5
Year SCSS
|
9.2
|
9.2
|
|
5
Year MIS
|
8.4
|
8.4
|
|
5
Year NSC
|
8.5
|
8.5
|
|
10
Year NSC
|
8.8
|
8.8
|
|
PPF
|
8.7
|
8.7
|
