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.