Under decision on the recommendations of the committee for comprehensive review of National Small Savings Fund (NSSF) dated 11th November, 2011, interest rates on small savings instruments have been changed.
Interest Rates on Small Savings Instruments
(i) The rate of interest paid under Post Office Savings Account (POSA) will be increased from 3.5% to 4% p.a.
(ii) The rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC (new instrument) will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year will be notified before 1st April of that year.
(iii) Assuming the date of implementation of the recommendations of the Committee as 1st December, 2011, the rate of interest on various small savings schemes for current financial year on the basis of the interest compounding/payment built in the schemes, will be as given below:-
Current Rate (%)
Proposed Rate (%)
|1 year Time Deposit|
|2 year Time Deposit|
|3 year Time Deposit|
|5 year Time Deposit|
|5 year Recurring Deposit|
|5 year MIS|
8.00 (6 year MIS)
|5 year NSC|
8.00 (6 year NSC)
|10 year NSC|
(iv) Payment of 5% bonus on maturity of MIS will be discontinued.