The government of India today increased interest rates on deposit schemes offered by post offices, like savings account, Monthly Income Scheme and Public Provident Fund. Post office savings accounts will henceforth fetch 4 per cent interest, up from 3.5 per cent, the Monthly Income Scheme (MIS) and the Public Provident Fund (PPF) will earn an interest of 8.2 per cent and 8.6 per cent respectively. The new rates will be applicable from the date of notification which will be announced soon. The decision to hike interest rates is a welcome steps as it will be now more aligned to the market rate. The Kisan Vikas Patras (KVPs) has been discontinued and maturity period of NSCs has been reduced to five years from existing six years. It has also newly introduced NSC with 10-year maturity. The annual investment ceiling in PPF savings has been increased to Rs one lakh from the present limit of Rs 70,000
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