Public Provident Fund (PPF) is lucrative (Click here to Read). In the article I had also brought about the differences in Employer's Provident Fund (which you may be enrolled in from your work place) and PPF. However yesterday the Government accepted the recommendations from an expert panel, headed by former RBI deputy governor Shyamala Gopinath, which would result in the following advantages for Investors.
The Interest Rates on PPF would be hiked to 8.6% from the previous 8% & the maximum amount that could be invested per annum has been hiked to 1,00,000 (1 Lakh) from the earlier amount of 70,000. This makes investing in Public Provident Fund even more attractive! (Click here to know why!)
Interest Rates on Post Office Savings account hiked to 4 % from 3.5%
Maturity period cut to 5 yrs from 6 yrs for National Savings Certificate and Monthly Income Scheme
New National Savings Certificate with 10 year maturity to be introduced
Interest on loans from PPF increased to 2% per annum from 1% earlier
Kisan Vikas Patrika to be discontinued
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