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Post office savings, PPF to fetch better returns from December 1 - The E
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Post office savings, PPF to fetch better returns from December 1


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NEW DELHI: PPF account holders, small depositors and persons keeping money in the schemes operated by post offices, will get higher rate of return from December 1, 2011. The government today notified increase in interest rates on public provident fund (PPF) to 8.6 per cent from 8 per cent now, and also raised ceiling on annual contributions to the fund to Rs one lakh from Rs 70,000. Interest rates on savings account in post offices would also go up to 4 per cent from 3.5 per cent at present. Similarly, interest rates on deposits of other maturities too would be raised from December.

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Further, the sale of Kisan Vikas Patras (KVP) will be discontinued from November 30. There was an apprehension about KVP, which was kind of a bearer instrument, that it was used for money laundering. In addition, the maturity period of monthly investment schemes (MIS) and national savings certificates would be reduced from six to five years. MIS would earn an interest of 8.2 per cent, but accounts opened on/after December 1 would not be entitled for bonus. 1 Crore Life Insurance paisabazaar.com/term-life-insurance
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