Friends,
Public Provident Fund (PPF) and National Savings Certificates (NSC) are two ways which are used by most of to save Income Tax in a Financial Year by investing required amounts in these schemes.Public Provident Fund (PPF) is fund by which investing in this fund the investor has a great benefit i.e. the Interest amount received at the time of maturity is fully exempted from tax. That's why most of us like to invest in this fund. Now hundreds of thousands of investors will get lower returns on small savings schemes like Public Provident Fund (PPF) and National Savings Certificates, with the government pruning the interest rate by 0.1 percent. The interest rate on PPF has now been cut to 8.7 per cent from 8.8 percent with effect from 1 April, 2013, while the rate on five-year NSC has been cut to 8.5 percent from 8.6 percent, and that on 10-year NSC to 8.8 percent from 8.9 percent. The finance ministry, which cut the rates, has however left the savings deposit rate and the one-year time deposit rate unchanged. The savings deposit rate has been left unchanged at 4 percent and the one-year term deposit too stays at 8.2 per cent.
