DGBA.CDD. No. 5342 /15.02.001/2013-14

March 21, 2014

Public Provident Fund Scheme, 1968 (PPF Scheme, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004) – Revision of interest rates

Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on small savings schemes, the interest rates on various small savings schemes for every financial year will be notified by the Government before April 1st of that year.

The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II dated 4th March 2014, advised the rate of interest on various small savings schemes for the financial year 2014-15. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2014-15, effective from April 01, 2014, on the basis of the interest compounding/payment built-in in the schemes, will be as under:


Rate of Interest w.e.f.

Rate of Interest w.e.f. 01.04.2014

5 Year SCSS, 2004

9.2% p.a.

9.2% p.a.

PPF, 1968

8.7% p.a.

8.7% p.a.

The contents of this circular may be brought to the notice of the branches of your bank operating the PPF, 1968 and SCSS, 2004 schemes. These should also be displayed on the notice boards of your branches for information of the PPF, 1968 & SCSS, 2004 subscribers.

Yours faithfully

(Shrikant Hamine)

More Under Income Tax

Posted Under

Category : Income Tax (28563)
Type : Notifications (16146) Notifications/Circulars (32857)

0 responses to “PPF and SCSS, 2004 Interest Rate wef 01.04.2014”

  1. Shirish Sadanand Shanbhag says:

    Senior Citizen Savings Scheme-2004 is giving 9.2% interest, but it is fully taxable. There is lock in period of 5 years to this investment. Also, one has to be a senior citizen, that is, investor should have completed the age of 60 years. In case of Government Servents, if they retire even at the age of 50 years, (voluntary retirement) they can participate in this scheme, provided, investment in this scheme, in retired government servent and his spouse’s name, should be from retirement dues, subject to Rs.15 lakh per person, limit of SCSS-2004.

    Pension is payable every quarter. TDS is made, on pension. Account can be opened in selected Post Offices and Nationalised Banks.

    Scheme is guaranteed by Central Government. It is much better than Pension Scheme offered by any Insurance Companies, including LIC.

    I suggest, to those, who have still 15 or more years to retire, they can create their own Tax Free Pension Scheme, by investing their savings in Public Provident Fund (PPF) Scheme. To know how to use PPF Account as a Pension Account, please Email me on my Email ID: s.s1954@rediffmail.com

    Shirish S. Shanbhag, Mumbai-400089. Dated: 1.8.2014

  2. Natabar Panda, Advocate, High Court of Orissa says:

    Senior Citizens generally expect a good return on their investments, which they keep as deposit in SCSS,2004 Scheme. They want to lead the last part of their life happily. Government/RBI may consider the aspect regarding increase of rate of interest in future.

Leave a Reply

Your email address will not be published. Required fields are marked *