Friday, 25 November 2011

More benefits in NSC, PPF, small saving investments

There are certain changes in the interest rate, time limit and deposit limit in PPF, NSC and other small saving investments, which is beneficial to investors. These changes are as per the recommendations of the Committee for Comprehensive Review of National Small Savings Fund (NSSF). The major changes are in NSC, PPF and other post office small savings investment schemes. Those changes are follows.

Monthly Income Scheme (MIS)

The maturity period of Monthly income scheme reduced from 6 years to 5 years. The interest rate of the MIS (MIS interest rate) increased from 8% to 8.2%. The maturity bonus of MIS is withdrawn. The existing maturity bonus is 5% of the principal amount. There no such maturity bonus is there afterwards.

National Saving Certificate

The time limit of NSC also reduced from 6 years to 5 years. The interest rate of NSC (NSC interest rate) increased from 8% to 8.4%.

New 10 years NSC

New NSC with a maturity of 10 years and interest rate of 8.7% introduced.

Kissan Vikas Patra

Kisan Vikas Patra (KVP) discontinued. No fresh issue of Kisan Vikas patra will be there.

Public Provident Fund (PPF)

Annual investment limit of PPF increased from Rs. 70000 to Rs. 100000. Interest rate on PPF (PPF interest rate) also has increased from 8% to 8.6%. (8.6% tax free interest as per the present income tax rule) Interest on loan from PPFalso increased from 1% to 2% per annum)

Post office time deposit (POTD)

Premature withdrawal with 1% less interest allowed in Post office Time Deposit. The withdrawal within 12 months will get only the interest rate of Post office Savings Account. Now the interest rate of post office savings account is 4% increased from 3.5%. The existing and new interest rate of POTD for various years is as follows:

Years                existing rate             new rate

1 year                    6.25%                    7.70%

2 years                 6.50%                     7.80%

3 years                 7.25%                     8.00%

5 years                 7.50%                     8.30%

Post office savings account

The interest rate of post office savings account increased from 3.4% to 4%.

Post office recurring deposit

The interest rate of post office recurring deposit increased from 7.5% to 8%.

nsc interest rate, ppf interest rate


post office interest, post office accounts


Related posts

All about Monthly Income Scheme (MIS)
All about post of time deposit (POTD)
All about Public Provident Fund (PPF)
All about National Savings Certificate (NSC)

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