The government has announced that it is reducing interest rates on Public Provident Fund (PPF), five-year and ten-year National Savings Certificates (NSC) by 0.1 per cent.

The finance ministry said that the interest rate on PPF and NSC will be reduced by 0.1 per cent each with effect from 1 April, 2013. The interest rate on PPF will be reduced from 8.7 per cent from 8.6 per cent, five-year NSC to 8.5 per cent from 8.6 per cent and for ten- year NSC, it will be reduced form 8.9 per cent to 8.8 per cent.

The government has also reduced the interest rate on five-year postal recurring deposits to 8.3 per cent. On the other hand, the government has not changed the savings deposit rate and it will remain at 4 per cent for the savers in the country. The interest rate on other small savings schemes that come with maturity of two years or more by 10 basis points

As per the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the government will notify interest rates for small saving schemes each financial year before the 1 of April each year.