The rate of return on fixed deposits for one and two years has been increased to 8.4% from the present 8.2%. Similarly, fixed deposits of three and five years have been raised by 0.1 percentage point to 8.4% and 8.5%, respectively. The interest rate on five-year recurring deposits has also been raised to 8.4%, up from 8.3%. The new rates are effective from April 1, 2014. Post office savings accounts (POSA) continues to fetch 4% interest per annum and the annual investment ceiling in PPF savings and interest rate has been kept unchanged at Rs. 1 lakh and 8.7% respectively. The interest rate on National Savings Scheme (NSC) with 5 and 10 year maturities also remain unchanged at 8.5% and 8.8%, respectively. The rates on five-year Monthly Income Scheme (MIS), the popular PPF (public provident fund) have, however, been kept unchanged at 8.5% and 8.7% respectively and the senior citizen savings schemes of a five-year tenure has been kept unchanged at 9.2%.
Wednesday, December 10, 2014
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