Post office savings deposit interest hiked

The interest rate on POSA stands increased to 4 per cent from 3.5 per cent for the current fiscal, deposits in schemes such as MIS and PPF will fetch attractive returns of 8.2 per cent and 8.6 per cent respectively, as compared to the existing interest rates of 8 per cent.

The government has decided to discontinue the Kisan Vikas Patra (KVP) scheme. It has also reduced the maturity period for MIS and National Savings Certificate (NSC) schemes to five years from the existing six years and has introduced a new 10-year NSC instrument with its interest rate pegged at 8.7%.

PPF savings accounts has been raised to Rs. 1 lakh from the current limit of Rs. 70,000.

The government has also scrapped the 5 per cent bonus on maturity of MIS schemes and abolished the commission for agents on PPF and Senior Citizens Savings Schemes.

The new rates are to be made applicable from the date of notification to be announced soon.

Post Office Savings Schemes