Govt cuts PPF, NSC interest rate

Hundreds of thousands of investors will now get lower returns on small savings schemes like Public Provident Fund (PPF) and National Savings Certificates, with the government pruning the interest rate by 0.1 percent.

The interest rate on PPF has now been cut to 8.7 per cent from 8.8 percent with effect from 1 April, 2013, while the rate on five-year NSC has been cut to 8.5 percent from 8.6 percent, and that on 10-year NSC to 8.8 percent from 8.9 percent.

The finance ministry, which cut the rates, has however left the savings deposit rate and the one-year time deposit rate unchanged.

The savings deposit rate has been left unchanged at 4 percent and the one-year term deposit too stays at 8.2 per cent.