Interest Rate Clarification-SCSS

POSTED BY Sundaram A ON March 27, 2012 11:40 pm COMMENTS (5)

Interest rate on SCSS has been increased to 9.3% w.e.f. 1.4.2012.Will this be applicable to existing investors also?i.e. Will the existing investors get interest @ 9.3% for F.Y.2012-13?Thanks for clarifying.

5 replies on this article “Interest Rate Clarification-SCSS”

  1. Sundaram A says:

    Dear Ramachandran,

    The quarterly interest due on 30.6.2012 has been already paid out and it has been done @ 9% p.a. for all investments done prior to 1.4.2012.Hence there is no ambiguity now-only investments done during F.Y.2012-13 would be eligible for interest @ 9.3% p.a. and this would be applicable for the entire tenure of such deposits,irrespective of whether the rate is revised upwards or downwards in the coming Financial Years.

    Please advise if you have a different view.

  2. Ramachandran R V says:

    RBI circular says that the enhanced interest rate is applicable for the financial year 2012-2013. So we cannot assume that it will be applicable only for new investors.

  3. Ashal should be right. SCSS being a kind of fixed tenure the interest rate will be applicable for new accounts only. Just like someone who locked higher rates in the past wont be impacted by lower rates in future similarly new rates will only benefit newer accounts.

  4. Sundaram A says:

    Thanks,Ashal.Truly appreciate your efforts.I also have the same view on the matter and I asked it in the Forum to have it confirmed.

  5. Dear Sundaram, In my opinion, SCSS is a fixed deposit scheme so the new interest rate ‘ll be applicable to new accounts only. I tried to clarify this but no info was available on the same. I repeat it’s merely my opinion & no clear info is available.

    Thanks

    Ashal

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