Interest rate on five-year NSC (National Savings Certificate) was also slashed to 8.5 per cent from 8.6 per cent and on 10-year NSC to 8.8 per cent from 8.9 per cent.

However, interest rates on savings deposit and one-year time deposit was left unchanged. The rates will be effective from April 1, 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.

A Public Provident Fund(PPF) account is the most tax efficient vehicle launched by government of India. Investments made under this are deductible under Section 80C and interest earned is also tax-free.

Click to know why should you have a PPF Account?

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