PPF, NSC rates cut by 0.1%, savings deposits unchanged

Moneycontrol Bureau

The finance ministry has lowered interest rates on Public Provident Fund (PPF), five-year  and 10-year National Savings Certificates (NSC)  by 0.1 percent each, with effect from April 1. Interest rate on PPF has been cut to 8.7 percent from 8.8 percent, five-year NSC to 8.5 percent from 8.6 percent and that of 10-year NSC to 8.8 percent from 8.9 percent.
Interest rate on five-year postal recurring deposits has also been reduced to 8.3 percent but the finance ministry has kept the savings deposit rate unchanged at 4 per cent.
Based on the decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified every financial year, before 1st April of that year.