It was decided by the Government of India that interest rates on Small savings Schemes will be linked to yields on government securities of comparable maturity. In pursuance of that decision, the Government has decided to revise the rates applicable on various small savings schemes as given in the table below.

Scheme	Rate of interest w.e.f.01.04.2014	Rate of Interest w.e.f. 01.04.2015
1.	2.	3.
Savings Deposit	4.0	4.0
1 Year Time Deposit	8.4	8.4
2 Year Time Deposit	8.4	8.4
3 Year Time Deposit	8.4	8.4
5 Year Time Deposit	8.5	8.5
5 Year Recurring Deposit	8.4	8.4
5 Year SCSS	9.2	9.3
5 Year MIS	8.4	8.4
5 Year NSC	8.5	8.5
10 Year NSC	8.8	8.8
PPF	8.7	8.7
Kisan Vikas Patra	8.7	8.7
Sukanya Samriddhi Account Scheme	9.1	9.2

The above rates will be effective from 01.04.2015.

Thus the rates on many of the small savings scheme have undergone an upwards revision vis-à-vis 2014-15.

Interest rate linkage to government securities yields prompts revision of small savings scheme rates, effective from the announced commencement date. The Government has linked interest rates on Small Savings Schemes to yields on government securities of comparable maturity and has revised the statutory rates for multiple public savings instruments, specifying that the revised schedule governs accruals and new investments from the announced effective date.