Interest Rates

Interest Rate of Various Securities

Rate of Interest on National Saving Certificates (VIII Issue) being issued on or after 01-03-2003
Rate of Interest on Kisan Vikas Patra being issued on or after 01-03-2003
Rate of Interest on Indira Vikas Patra being issued on or after 01-01-1999

A. Rate of Interest on National Saving Certificates VIII Issue (NSC) issued on or after 01-03-2003

Year for which interest accrues	Rate of Interest
1st Year	8.16%
2nd Year	8.83%
3rd Year	9.55%
4th Year	10.33%
5th Year	11.17%
6th Year	12.08%

Interest is taxable under the head 'Income from Other Sources'. However, interest upto 5th year being reinvested in the NSC itself, hence eligible for deduction u/s 80C.

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B. Interest on Kisan Vikas Patra issued on or after 01-03-2003

Period from the date of certificate to the date of its encashment	Rate of Interest	Maturity Value (for Rs.1000 invested)
1 year	6.40%	Rs.1,065.02
2 years	6.40%	Rs.1,134.28
2 years & 6 months	6.40%	Rs.1,170.51
3 years	6.40%	Rs.1,207.95
3 years & 6 months	6.88%	Rs.1,267.19
4 years	6.88%	Rs.1,310.80
4 years & 6 months	6.88%	Rs.1,355.90
5 years	7.36%	Rs.1,435.63
5 years & 6 months	7.36%	Rs.1,488.49
6 years	7.36%	Rs.1,543.30
6 years & 6 months	7.85%	Rs.1,649.13
7 years	7.85%	Rs.1,713.82
7 years & 6 months	7.85%	Rs.1,781.06
8 years	7.85%	Rs.1,850.93
8 years & 7 months		Rs.2,000.00

Interest is taxable under the head 'Income from Other Sources'. No deduction is available.

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C. Interest on Indira Vikas Patra issued on or after 01-01-1999

Year	Interest @ 12.25% on certificate of Rs.1000
1st Year	Rs.122.50
2nd Year	Rs.137.51
3rd Year	Rs.154.35
4th Year	Rs.173.26
5th Year	Rs.194.48
6th Year	Rs.217.90

Interest is fully taxable. No deduction is available.

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