Indian small saving schemes would yield more

As per the new announments from finance ministry indian small saving schemes will give you a higher return from the april 2012 after government announced changes in the rates in line with the higher market rates. almost 0.2% to 0.5% has been increased in different categories. Now a 10-year National Savings Certificate (NSC) will yield you 8.9% while the popular Public Provident Fund (PPF) will yield 8.8%. The savings deposit rate is unchanged at 4%.

The small savings schemes was not performing well in the recent years as the rate was very less than what was offered by other instruments. Now with effective rates, the total Net outflow would be Rs 12,000 crore from small savings schemes in the current year starting from April 2012. still when we compare with private banks this is still lesser than what we will get in private banks. HDFC offers 9% on a term deposit of one year. With revised rate, post office deposit of one year is 8.2%.