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


As indicated by Reserve Bank of India, DGBA, in its Circular No.RBI/2011-12/359 dated January 20, 2012, RBI today, has notified the interest rates for 2012-2013 in Public Provident Fund Scheme, 1968 (PPF, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004)

Today’s circular no is RBI/2011-12/483 and can be accessed here.

The revision in interest rates is based on 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.

The revised rates are :

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

The FAQ’s for 5 year SCSS, 2004 can be viewed here.

Brief particulars of the SCSS, 2004

a) The Scheme was launched in 2004

b) Investment to be made in multiples of Rs1,000/- with maximum of Rs15lacs.

c) The Scheme is available in Post Offices and designated branches of 24 Nationalized banks and one private sector bank

The PPF, 1968 Act can be read here

Brief particulars of PPF, 1968

a) The Act came into force from 01/07/1968

b) Deposits under the scheme eligible for deduction from taxable income under Sec. 80CC of Income Tax from financial year 2005-06 (Assessment Year 2006-07).

c) Any Individual/Hindu Undivided Family/Association of persons can open a PPF A/c.

d) Only one PPF account is permissible per individual in any one of the authorised banks/Post offices in India.

e) Like all Bank Accounts, Nomination facility is available to more than one individual under PPF scheme.

f) A maximum number of 12 instalments can be paid in a year with a minimum of Rs.500/- for every instalment. There is a ceiling of Rs.1,00,000/- per year on the deposit amount.

g) The account achieves maturity after a lapse of 15 years and can be closed at the time or renewed for a block of another 5 years.

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