Today Finance Ministry lowered interest rates on few of Post Office Saving Schemes.

Even though small investors may not feel the heat but investors who depend on interest income like MIS or SCSS schemes may feel the heat with this lower. I think it was better if Govt considered SCSS scheme as a separate and maintained the same interest rate. This may actually benefit our senior citizens. Below are the revised rates of all schemes.

As I updated during previous year change in my old post, this changes will be on yearly base and above rates will be effective from 1st April 2013 to 31st March 2014. These interest rates are decreased to match with current interest rates in market. Hope this decrease will not make few risk adverse investors to stay away from these schemes. Decrease in above interest may also give an opportunity for bond market investment. But it is wise if you invest after evaluating your goal and the risk involved their too.

SMALL SAVINGS SCHEMES - REVISION OF INTEREST RATES FOR SMALL SAVINGS SCHEMES WITH EFFECT FROM 1-4-2013 Based on the decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified

every financial year, before 1st April of that year. Accordingly, the rate of interest on various small savings schemes for the financial year 2013-14 effective from 1-4-2013, on the basis of the interest compounding/payment built-in in the schemes, shall be as under :

Rate of Rate of Interestw.e.f. 1-4- Interest w.e.f. 1-42012 2013 1 2 3 Savings Deposit 4.0 4.0 1 Year Time Deposit 8.2 8.2 2 Year Time Deposit 8.3 8.2 3 Year Time Deposit 8.4 8.3 5 Year Time Deposit 8.5 8.4 5 Year Recurring 8.4 8.3 Deposit 5 Year SCSS 9.3 9.2 5 Year MIS 8.5 8.4 5 Year NSC 8.6 8.5 10 Year NSC 8.9 8.8 PPF 8.8 8.7

Scheme