Increasing Post Office PPF interest rate to 8.6% isn’t the only change the Government has taken to attract small investors towards Post Offices. There are a lot more; and here are the few things for you in brief:
A 5 year Monthly Income Scheme (MIS) now earns 8.2% interest (5% bonus no longer applies) and tenure is reduced to 5 years (previously 6 years)
Fixed deposits for 1 year now earn 7.7% (previously, this was 6.25%)
A 5 year recurring deposit will now earn you at 8% compounded interest
National Savings Certificate (NSC) will now only be for a maximum of 5 years but a special NSC with 10 year term is introduced
Kisan Vikas Patra (KVP) is being withdrawn
Interest over loan taken on PPF account (in Post office) is increased by 2%
So clearly, there are some changes that some may not like, but all of the above changes will come into effect from the day the notification officially announcing these changes comes out.
All the interest rates mentioned above will be revised (doesn’t necessarily mean they will be changed) every year before 1 April
