Starting next month, post office savings schemes as well as PPF accounts would attract better interest rates for customers.
With effect from December 01, 2011, interest rate of public provident fund (PPF) accounts would be increased to 8.6%. Also the annual contribution limit to the fund would be raised to Rs 1 lakh from Rs 70,000 earlier.
Post office deposits would also see a rise in interest rates from 3.5% to 4%.
With suspicion arising regarding the misuse of Kisan Vikas Patra (KVP), its sale will be stopped from November 30, 2011.
Monthly income schemes (MIS) would see a reduced period of maturity from 6 to 5 years.