In the process of implementation of Shyamlal Gopinath committee recommendations Government raised interest rates on post office operated small savings upto 0.5%. The new rates will be effective from April 1, 2012 and will remain valid during 2012-13.
Post Office Recurring Deposit (RD) account
The five-year recurring deposit interest rate hiked from 8% to 8.4% (0.4% increase).
Post Office Monthly Income Scheme (MIS)
5-year (Monthly Income Scheme) MIS increased from 8.2 per cent interest to 8.5% which is 0.3% hike.
Related : Recent hike of Post office interest rates.
Post Office Time Deposits
Interest rates on time deposits of one and two years have been increased. Time Deposit for one year increased from 7.7% to 8.2% (0.5% increase). Time Deposit for two years increased from 7.8% to 8.3% (0.5% increase).
Post Office savings account
No change. It will remains 4%.
Public Provident Fund (PPF)
Interest rate on PPF has been increased from 8.6% to 8.8% i.e. by 0.2% .
National Savings Certificates (NSC)
NSC for the maturity period of five years hiked to 8.6%, where as for ten years attracts 8.9% (upto 0.2%). National Savings Scheme (NSC) with a 10-year maturity is introduced newly, which attracts return of 8.9%.
Senior Citizens Savings Scheme (SCSS)
The rate for senior citizens savings scheme (SCSS) has been hiked to 9.3% from 9%.