Interest rates on Small Savings Schemes are Administered Interest Rates, and are benchmarked to the average annual yield on Government Securities of comparable maturity in the secondary market with a suitable spread over the benchmark yield, depending upon the maturity and liquidity of the instruments. The interest rates of Small Savings Schemes have been benchmarked to G-Sec. yields of equivalent maturity with suitable spread and are reset every 1^st April.

Interest rates applicable on each Small Savings Scheme w.e.f. 1.4.2014 are as below:

Instrument	Rate of Interest (%) w.e.f 1.4.2014
Savings Deposit	4.0
1 Year Time Deposit	8.4
2 Year Time Deposit	8.4
3 Year Time Deposit	8.4
5 Year Time Deposit	8.5
5 Year Recurring Deposit	8.4
5 Year SCSS	9.2
5 Year MIS	8.4
5 Year NSC	8.5
10 Year NSC	8.8
PPF	8.7

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha.

Administered interest rates benchmarked to government securities yields, with small savings rates reset annually on April first. Interest rates for Small Savings Schemes are Administered Interest Rates benchmarked to the average annual yield on Government Securities of comparable maturity in the secondary market with a suitable spread based on maturity and liquidity, and are reset every 1st April. A rate schedule effective w.e.f. 1.4.2014 specifies applicable interest percentages for Savings Deposit, various Time Deposits, Recurring Deposit, Senior Citizen Savings Scheme, Monthly Income Scheme, National Savings Certificates and Public Provident Fund.