M A I N   N E W S

Post office savings to fetch more now

New Delhi, November 11
In a bonanza to millions of small savers, the government today increased interest rates on deposit schemes offered by post offices, like savings account, Monthly Income Scheme (MIS) and Public Provident Fund (PPF).

While post office savings accounts will fetch 4% interest, up from 3.5%, the MIS and the PPF will earn an interest of 8.2% and 8.6%, respectively, a government release said. The maximum increase is in the one-year fixed deposits — from 6.25% to 7.7%. The interest rate on other time maturities has been hiked as well. The new rates will be applicable from the date of notification, which will be announced soon.

The government, however, decided to discontinue the Kisan Vikas Patras and lowered the maturity period for MIS and NSCs to five years from existing six years. It also introduced the National Savings Scheme with 10-year maturity. The annual investment ceiling in PPF savings has been increased to Rs 1 lakh from the present limit of Rs 70,000. — PTI

 

key points n Interest rate on post office savings hiked to 4% n PPF to fetch 8.6% return; investment limit hiked to Rs 1 lakh/yr n 5-year MIS will yield 8.2% interest; 5% bonus on maturity goes n Kisan Vikas Patras to be discontinued n 10-year NSC with 8.7% interest to be launched n Agent commission on PPF and senior citizen schemes to go