Referring to the circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, the Government of India have vide their Office Memorandum (OM) No. 6-1/2011-NS.II (Pt.) dated March 26, 2012, advised the rate of interest on various small savings schemes for the financial year 2012-13.
Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2012-13 effective from April 01, 2012, on the basis of the interest compounding/payment built-in in the schemes, will be as under:
| Scheme | Rate of interest w.e.f. 01.12.2011 | Rate of interest w.e.f. 01.04.2012 |
| 5 year SCSS, 2004 | 9.0% p.a | 9.3% p.a |
| PPF, 1968 | 8.6% p.a | 8.8% p.a |
This will result in good amount of saving in PPFs and SCSS.
