PPF to fetch higher returns from Dec 1

PPF account holders, smalldepositors and persons keeping money in the schemes operated by post offices,will get higher rate of return from December 1, 2011.

The government on Thursday notified increase in interestrates on public provident fund (PPF ) to 8.6 per cent from 8 per cent, and alsoraised ceiling on annual contributions to the fund to Rs one lakh from Rs70,000.

Interest rates on savings account in post offices would alsogo up to 4 per cent from 3.5 per cent at present.

Similarly, interest rates on deposits of other maturitiestoo would be raised from December.

Further, the sale of Kisan Vikas Patras (KVP) will bediscontinued from November 30. There was an apprehension about KVP, which waskind of a bearer instrument, that it was used for money laundering.

In addition, the maturity period of monthly investmentschemes (MIS) and national savings certificates would be reduced from six tofive years.

MIS would earn an interest of 8.2 per cent, but accountsopened on/after December 1 would not be entitled for bonus.