PPF Better Returns

Central government notified increase in interest rates on PPF (Public Provident Fund) to 8.6% from 8% now, and also raised ceiling on annual contributions to the fund to Rs. 1 lakh from Rs. 70,000.

Interest rates on savings account in post offices would also go up to 4% from 3.5% at present. Similarly, interest rates on deposits of other maturities too would be raised from December 1, 2011.

The maturity period of MIS (Monthly Investment Schemes) and NSC (National Savings Certificates) would be reduced from 6 to 5 years. MIS would earn an interest of 8.2%t, but accounts opened on or after December 1, 2011 would not be entitled for bonus.

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