Good news to millions of post office small savers. Interest on Post Office small savings schemes like Recurring Deposit(RD), Public Provident Fund Scheme(PPF), Monthly Income Scheme(MIS), Savings account, National Savings Scheme(NSC) has been hiked. which will effect from notification date.
Rates are hiked in reference of Reserve bank guidelines as well as Shyamala Gopinath committee recommendations.
Post office Savings Account
Interest rate on post office savings account hiked from 3.5 per cent to 4 per cent.
Post office Public Provident Fund Scheme
Public Provident Fund(PPF) Interest rates raised from 8 per cent to 8.6 per cent. Also the limit of PPF investment has been hiked to Rs. 1 lakh from Rs. 70,000/year. Minimum Rs.500 per year remains same. Exemption of Tax under 80(c) also given.
Post office 5-year Monthly Income Scheme (MIS)
5-year (Monthly Income Scheme) MIS will yield 8.2 per cent interest.
Post office Fixed (time) Deposit (one year)
Fixed deposits attracted maximum hike in interest rates. One-year time deposit increased from 6.25 per cent to 7.7 per cent
Post office Kisan Vikas Patras (KVP)
Kisan Vikas Patras scheme has been closed.
Post office Recurring Deposit(RD)
Interest on 5-year recurring deposit hiked from 7.5 per cent to 8 per cent.
Post Office National Saving Scheme(NSC)
NSC with 8.7 per cent interest to be launched. Maturity period reduced from six years to five years.
Then why late, choose one of the schemes suitable for you and enjoy the benefits increased interest rates.