It is a good news for depositors who approach post offices for products like saving account, monthly income account and PPF (Public Provident Fund). The following changes have been introduced :
- The interest on Post office saving account has been raised to 4% p.a. from earlier 3.5%.
- Post office Monthly Income Scheme (MIS) would now fetch an interest of 8.2 %. The 5% bonus on MIS has been scraped off.
- Public Provident Fund (PPF) will earn an interest of 8.6 %. The saving limit of Rs. 70,000 has been increased to Rs. 100,000.
- The earlier popular investment scheme – Kisan Vikas Patras (KVPs) has been discontinued.
- The maturity life of MIS & NSC (National Saving Certificates) has been reduced from 6 years to 5 years.
- A new National Savings Scheme (NSC) with 10-year maturity has been introduced.
- Commissions earlier being provided to the agents on PPF & Senior Citizen Savings Scheme have been taken away.