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Showing posts with label interest. Show all posts
Showing posts with label interest. Show all posts
April 20, 2012
POSB INTEREST CALCULATOR - FROM 01.04.2012
1.
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April 1, 2012
March 26, 2012
Revision of interest rates for small savings schemes.
No.6-1.2011-NS.II(Pt.)
Ministry of Finance
Department of Economic Affairs
(Budget Division)
New Delhi, the 26th March, 2012
OFFICE MEMORANDUM
Sub: Revision of interest rates for small savings schemes.
The undersigned is directed to refer
to Ministry of Finance's O.M. of even number dated 11th November, 2011,
vide which the various decisions taken by the Government on the
recommendations of the Shyamala Gopinath Committee for Comprehensive
Review of National Small Savings Fund (NSSF), were communicated to all
concerned.
2. One of the
decisions of the Government based on the recommendations of the
Committee relates to revision of interest rates every financial year, to
be notified before 1st April of that year. Accordingly, the rates of
interest on various small savings schemes for the financial year 2012-13
effective from 1.4.2012, on the basis of the interest
compounding/payment built-in the schemes, shall be as under:
| Scheme | Rate of Interest w.e.f. 1.12.2011 | Rate of Interest w.e.f. 1.4.2012 |
|---|---|---|
| Savings Deposit |
4.0
|
4.0
|
| 1 year Time Deposit |
7.7
|
8.2
|
2 year Time Deposit
|
7.8
|
8.3
|
3 year Time Deposit
|
8.0
|
8.4
|
5 year Time Deposit
|
8.3
|
8.5
|
5 year Recurring Deposit
|
8.0
|
8.4
|
5 year SCSS
|
9.0
|
9.3
|
5 year MIS
|
8.2
|
8.5
|
5 year NSC
|
8.4
|
8.6
|
10 year NSC
|
8.7
|
8.9
|
PPF
|
8.6
|
8.8
|
3. Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately.
4. This has the approval of Finance Minister.
sd/-
(Shaktikanta Das)
Addl. Secretary to the Govt. of India
Source: www.finmin.nic.in
March 23, 2012
Small savings like NSC, PPF, post office deposits to fetch higher returns
NEW DELHI: There is finally some good news for individuals in a season
of duty hikes and provident fund rate cut. The government is raising
interest rate on small savings schemes such as National Savings Certificate (NSC) and post office deposits by 20-50 basis points.
The new rates will, however, be applicable on investments that you make from April 1 and not on those that you park over the next 10 days to meet your tax saving requirements.
As a result, NSC and public provident fund (PPF), which is a voluntary deposit as opposed to employee provident fund, will earn you 8.8-8.9% instead of 8.6% a year. The shorter tenure deposits, such as term deposits in post offices, are expected to fetch you more than the longer tenure products such as PPF or the 10-year NSC. Savings bank accounts in post offices will, however, not see any change as the 4% return is in line with what most banks pay at present.
The increase in small savings rates, which is expected to be notified by the finance ministry, is in sync with the new policy to link returns on the popular savings instruments with the interest rate on government bonds.
Bank deposits may, however, look more attractive to many as they offer 9% return. But a scheme like PPF, which has a minimum term of 15 years, comes with additional tax sops. Not only is it part of the 80C benefits which entitles tax payers to get a concession of up to Rs 1 lakh a year, but the interest earned on the deposits is also tax-free. So, at the revised rates, the actual return for someone in the 30% tax bracket will work out to 12%.
In addition, the rate of return on small savings schemes that will be notified will be for the full financial year, while bank deposit rates are expected to come down with the Reserve Bank of India widely predicted to begin the rate cut cycle. Even before lending rates come down, banks will start pruning returns on deposits to lower their cost of funds.
The move to raise small savings rates comes barely a fortnight after the Employees Provident Fund Organization (EPFO) slashed the annual return from 9.5% last year to 8.25% for the current financial year based on a decision taken by the finance ministry. In the budget, finance minister Pranab Mukherjee decided to increase the excise duty and service tax rates from 10% to 12% which will put a burden of Rs 35,000 crore on anyone buying a matchbox or a car. He, however, offered some concession by way of an increase in exemption limit for direct tax from Rs 1.8 lakh to Rs 2 lakh.
The new rates will, however, be applicable on investments that you make from April 1 and not on those that you park over the next 10 days to meet your tax saving requirements.
As a result, NSC and public provident fund (PPF), which is a voluntary deposit as opposed to employee provident fund, will earn you 8.8-8.9% instead of 8.6% a year. The shorter tenure deposits, such as term deposits in post offices, are expected to fetch you more than the longer tenure products such as PPF or the 10-year NSC. Savings bank accounts in post offices will, however, not see any change as the 4% return is in line with what most banks pay at present.
The increase in small savings rates, which is expected to be notified by the finance ministry, is in sync with the new policy to link returns on the popular savings instruments with the interest rate on government bonds.
Bank deposits may, however, look more attractive to many as they offer 9% return. But a scheme like PPF, which has a minimum term of 15 years, comes with additional tax sops. Not only is it part of the 80C benefits which entitles tax payers to get a concession of up to Rs 1 lakh a year, but the interest earned on the deposits is also tax-free. So, at the revised rates, the actual return for someone in the 30% tax bracket will work out to 12%.
In addition, the rate of return on small savings schemes that will be notified will be for the full financial year, while bank deposit rates are expected to come down with the Reserve Bank of India widely predicted to begin the rate cut cycle. Even before lending rates come down, banks will start pruning returns on deposits to lower their cost of funds.
The move to raise small savings rates comes barely a fortnight after the Employees Provident Fund Organization (EPFO) slashed the annual return from 9.5% last year to 8.25% for the current financial year based on a decision taken by the finance ministry. In the budget, finance minister Pranab Mukherjee decided to increase the excise duty and service tax rates from 10% to 12% which will put a burden of Rs 35,000 crore on anyone buying a matchbox or a car. He, however, offered some concession by way of an increase in exemption limit for direct tax from Rs 1.8 lakh to Rs 2 lakh.
March 21, 2012
Interest Rate for GPF for the period year 2011-2012.
Resolution
- accumulations at the credit of subscribers to the GPF and other
similar funds - 2011-2012(89 KB) (Dated 19th March, 2012)
(PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA)
(PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA)
F.NO. 5(1)-B(PD)/2011
Government of India
Ministry of Finance
(Department of Economic Affairs)
New Delhi, the 19th March, 2012
RESOLUTION
It is announced for general information that during the year 2011-2012, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% (Eight per cent) for the period from 1.4.2011 to 30.11.2011 and 8.6% (eight point six percent) with effect from 1.12.2011.
The funds concerned are:—
1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.
2. Ordered that the Resolution be published in Gazette of India.
sd/-
(Brajendra Navnit)
(Brajendra Navnit)
Deputy Secretary (Budget)
Source: www.finmin.nic.in
November 18, 2011
Important instructions to Post Offices regarding POSB Interest rate
Rajesh Kumawat | 19:56 |
interest
From: Program Office-Headquarters <arrow-hq@indiapost.gov.in>
To: pmg-dop@lsmgr.nic.in, CPMsG <cpmg-dop@lsmgr.nic.in>
Date: Wed, 16 Nov 2011 11:51:29 +0500
Subject: [cpmg-dop] Implementation of new Interest rates and other changes in PO Savings Schemes published in Newspapers
Respected Madam / Sir,
Kindly refer to the item published in the leading newspapers regarding revised rate of interest and new features of various small savings schemes which is also uploaded by Ministry of Finance on its website in the shape of Office Memorandum. Ministry of Finance has requested to issue instructions to all post offices that the new rates of interest and other decisions taken should not be implemented till notifications are issued by the Ministry.
Therefore, it is requested to issue instructions to all post offices to wait for receipt of notifications issued by Ministry of Finance and circulated by the Department with reference to the implementation of new rates and other features of the small savings schemes.
Regards
Directorate Programme Office- Project Arrow
O/o Secretary Posts
Dak Bhawan, New Delhi-110 001
Tel: 2303 6102, 6808, 23096155
Directorate Programme Office- Project Arrow
O/o Secretary Posts
Dak Bhawan, New Delhi-110 001
Tel: 2303 6102, 6808, 23096155
August 25, 2011
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