Increase in Rate of Interest on Post office Savings Schemes

The Government of India has announced increase in rate of interest being offered on Post office Savings schemes.

The Salient features are as follows :-

1) Post office Savings Account Interest rate has been increased from 3.5% to 4% p.a

2) Post Office monthly Income Scheme Interest rate has been increased to 8.2% p.a.

3) Interest on Public Provident Fund has been increased to 8.6% p.a.

4) One year Fixed Deposit interest rate has been increased from 6.25% t0 7.7% p.a.

5) Kisan Vikas Patras (KVP) are being discontinued.

6) The maturity period of Monthly Income Scheme & National Savings Certificate reduced to 5 years as against the present 6 years.

7) New National Savings Certificate (NSC) with 10 year maturity is being introduced.

8 ) The Annual limit of Rs. 70000/- for PPF has been enhanced to Rs. 100000/- p.a.

9) The 5% Bonus Payable at the end of the maturity period on Monthly Income Schemen has been scrapped.

10) There wont be any commission payable to agents on PPF & Senior Citizen Savings Schemes.

The new rates will be applicable from the date of notification,which will be announced soon.