Department of Post have issued various notification to give effect to decision of Ministry of Finance taken on 11th November, 2011. The decision was to review the increase rate of interest on various Post Office Schemes and make necessary changes in duration of scheme, payment of commission, etc.
It is notified that these decision will come in force from 1st December, 2011.
The notification pertains to discontinuing Kissan Vikas Patra (KVP) from 1-12-2011
Maturity period of 6 years National Saving Certificate) issued after 1-12-2011 will be 5 years only and maturity amount will be Rs.150.90p for every Rs.100/- The interest works out to be 8.4% p.a. compounded half yearly. Amount of Maximum deposit to be made in Public Provident Fund (PPF) account during the financial year has been raised to Rs.1,00,000/- instead of Rs.70,000/-. This is applicable to new account opened after 1-12-2011 as well as existing account. Interest on subscription made to deposit in PPF account after 1-12-2011 and on credit balance in the account will bear interest @ 8.6% p.a.
Interest on loans against PPF account will be charged @2% instead of 1%.
Post Office Monthly Income Scheme (MIS), new account opened on or after 1-12-2011, will be for 5 years only as against 6 years period. Interest rate has been increased form 8% to 8.2% per annum and interest will be calculated annually. There will be no maturity bonus of 5% for accounts opened after 1-12-2011.
Balance at Credit in Post office Saving Account will fetch interest of 4% as against 3.5% previously.
Post office Term Deposits will be for period of 1,2,3 &5 years and will fetch interest @ 7.7%. 7.8%, 8.0% & 8.3% respectively. Interest will be compounded Quarterly. If deposits are prematurely withdrawn after six months but before one year form date of deposit, then saving bank rate of interest applicable for time to time shall be paid. In case of deposit of period of more then 1 year, then interest for rate applicable for rate of deposit for period of holding after reducing 1% form the rate.
Post of Recurring deposit rate has been increased form 7.5% to 8%. A monthly deposit of Rs.10/- p.m. will fetch Rs.738.62 at the end of the period.
Similarly other decision will come in effect from 1-12-2011
