PPF will get higher rate of return from December 1, 2011

PPF account holders will get higher rate of return from December 1, 2011. The government today notified increase in interest rates on public provident fund (PPF) to 8.6 per cent from 8 per cent now, and also raised ceiling on annual contributions to the fund to Rs one lakh from Rs 70,000.

Other changes in Small Savings Schemes and Kisan Vikas Patra (KVP)

1. Interest rates on Post office deposits would also see a rise in interest rates from 3.5% to 4%.

2. The sale of Kisan Vikas Patras (KVP) will be discontinued from November 30, 2011.

3. Monthly income schemes will earn an interest of 8.2 per cent, but accounts opened on or after December 1 will not be entitled for bonus.

4. Monthly income schemes (MIS) would see a reduced period of maturity from 6 to 5 years