Friends, In the last month, Finance Department has revised on interest rates of Small Saving Schemes on 01.12.2011. At the time of revision of interest rates, it was indicated that analysis on Interest Rates on Small Saving Schemes will be done each year in future on the basis of market position. It means nature of interest rate will be floating. After reading this news, investor was in doubt that if he invest in any scheme today, there are lot of chances to receive less rate of interest in future in case market goes down.
Keeping in view these things, Finance Department has released a press note on 04.01.12 to clarify that except PPF scheme Interest Rate on all other schemes (NSC, Senior Citizen Saving Scheme, Monthly Income Scheme, Recurring Deposit) of Small Saving Scheme will be same in coming years as was on the date of Deposit. For example if an investor invest Rs. 1 Lakh in MIS on 01-02-2012 @ 8.20 interest or at present interest rate. He will receive same interest rate upto 5 years or till the expiry of said scheme. There will be no effect on investor, if Government reduce interest rate on MIS to @ 7% p.a..