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Revised Interest Rates On PPF, NSC, MIS & Post Office Savings W.E.F 1 Dec 2011

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With effect from 1st December 2011, the rate of interest on PPF, NSC, MIC and post office scheme will be raised to offer better returns to the investors.

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Public Provident Fund (PPF)

The government of India have decided to raise the interest rate on PPF accounts from 8% to 8.6% w.e.f 1 Dec 2011. Above this the investment limit on PPF account have also been raised to Rs 1 lakhs from Rs. 70,000.

This positive move in PPF interest rate will offer good post tax returns to its investors.

Loans taken from PPFs would attract an interest of 2% p.a.

Agent commission on opening PPF account will not be applicable w.e.f 1 Dec 2011.

ALSO READ : – Check How DTC Will Take Away The Tax Exemptions Available Under Income Tax Act 1961 On Small Saving Funds

National Saving Certificate (NSC)

The government of India have decided to raise the interest rate on NSC accounts from 8% to 8.4% w.e.f 1 Dec 2011. Above this, a new 10 year NSC is expected to come soon.

Maturity period of National Saving Certificate will be reduced from six to five years.

A new “10-year national savings certificate, 2011″. will also be launched on 1 Dec,  will earn interest at the rate of 8.7 percent per annum, compounded semi-annually.

ALSO READ :- Now Earn More By Investing Under New 10 Year National Savings Certificate Scheme

Post Office Scheme

The government of India have decided to raise the interest rate on Post office scheme from 3.5% to 4% w.e.f 1 Dec 2011.

Monthly Investment Scheme (MIS)

The government of India have decided to raise the interest rate on Post office scheme from 8% to 8.2% w.e.f 1 Dec 2011. But the bonus of 5% offered by government to their MIS customer at the time of maturity will not be applicable to new and existing customers w.e.f 1 Dec 2011.

Maturity period of monthly investment schemes (MIS) will be reduced from six to five years.

Kisan Vikas Patra

The government of India have decided to withdraw Kisan Vikas Patra Yojana w.e.f 1 Dec 2011.

Senior Citizens Savings Schemes

Agent commission on opening Senior Citizens Scheme account will not be applicable w.e.f 1 Dec 2011.

Mahila Pradhan Kshetriya Bachat Yojana (MPKBY)

Agents commission for Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) has been fixed at 4% w.e.f 1 Dec 2011.

From December 1, the rates of interest on these instruments will be market linked and hence variable. On some year it will go up, while on some it will go down.

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