India Post Interests

The Precisous Postal Department of India is going to Change its Rate of Interest of many schemes.   A gist is furnished below.  
Maturity period for Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be reduced from 6 years to 5 years.

(ii)           A new NSC instrument, with maturity period of 10 years, would be introduced.

(iii)          Kisan Vikas Patras (KVPs) will be discontinued.

(iv)         The annual ceiling on investment under Public Provident Fund (PPF) Scheme will be increased  from Rs. 70,000 to Rs..1 lakh.

(v)          Interest on loans obtained from PPF will be increased to 2% p.a.from existing 1% p.a. 

 
(vi)         Liquidity of Post Office Time Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing pre-mature withdrawal at a rate of interest 1% less than the time deposits of comparable maturity. For pre-mature withdrawals between 6-12 months of investment, Post Office Savings Account (POSA) rate of interest will be paid. 

Intere  Rates on Small Savings Instruments :

(i)            The rate of interest paid under Post Office Savings Account will be increased from 3.5% to 4% p.a.

(ii)        The rate of interest on small savings schemes will be aligned with G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC (new instrument) will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year will be notified before 1st April of that year.

(iii)          Assuming the date of implementation of the recommendations of the Committee as 1st December, 2011  the rate of interest on various small savings schemes for current financial year on the basis of the interest compounding/payment built in the schemes, will be as given below:-


Instrument
Current Rate (%)
Proposed Rate (%)
Savings Deposit
3.50
4.0
1 year Time Deposit
6.25
7.7
2 year Time Deposit
6.50
7.8
3 year Time Deposit
7.25
8.0
5 year Time Deposit
7.50
8.3
5 year Recurring Deposit
7.50
8.0
5-year SCSS
9.00
9.0
5 year MIS
8.00 (6 year MIS)
8.2
5 year NSC
8.00 (6 year NSC)
8.4
10 year NSC
New Instrument
8.7
PPF
8.00
8.6
(iv)          Payment of 5% bonus on maturity of MIS will be discontinued.
Commission to Agents

(i)         Payment of commission on PPF schemes (1%) and Senior Citizens Savings Scheme (0.5%) will be discontinued.
(ii)        Agency commission under all other schemes (except MPKBY agents) will be reduced from existing 1% to 0.5%.
(iii)       Commission at existing rate of 4% will continue for Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents.
(iv)       Incentives, if any, paid by the State/UT Governments will be reduced from the commission paid by the Central Government
Courtesy : www.sapost.blogspot.com 




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Comments

  1. P.P.S.PandianNovember 14, 2011 at 9:22 PM

    From Mathi's Oorulagam , I come to know about your blog. Thanks for posting this information on detals of change of interest in POSB Schemes.It is put in clear terms. They are many people across the world write blogs in English. Why dont u write in Tamil ....P.Sermuga Pandian

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