Revision of Interest Rates for Small Savings Schemes for the Financial Year 2014-15 Announced

The finance ministry on Tuesday effected a minor raise in interest rates on post office deposits.
Rates on one-and two-year fixed deposits have been hiked from 8.2% to 8.4%,while those on three-year FDs and five-year recurring deposits have been raised 0.1% to 8.4%.Five-year FDs will fetch 8.5% a year.The rates will be applicable from April 1.
The hike is in line with the recent trend in bank deposits,which fetch higher returns than those in POs.
PPF deposits will continue to earn 8.7%,translating into returns of 11.3% on annual basis as the accretion in the account is tax free.

source.

Press Information Bureau

Government of India

Ministry of Finance

04-March-2014

Revision of Interest Rates for Small Savings Schemes for the Financial Year 2014-15 Announced

            Various decisions taken by the Government of India on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned by the Government through its Office Memorandum dated 11th November, 2011.

            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 with the approval of the Finance Minister, the rates of interest on various small savings schemes for the Financial Year 2014-15 effective from 01.04.2014, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :

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