The key changes are as follows –
1. Post Office Savings Account interest rate raised to 4 % (from existing 3.5% per annum).
- Interest rate raised to 8.6% (from existing 8% per annum);
- Maximum Investment limit raised to Rs 1 lakh (from existing Rs 70,000 per annum).
3. Kisan Vikas Patra (KVP) discontinued.
4. New Issue of National Savings Certificate (NSC) would be launched with a 10-year maturity with an interest rate of 8.7% (per annum); maturity term reduced to 5 years (from existing maturity term of 6 years).
5. The maturity term of Monthly Income Scheme (MIS) of post office and NSC will now be 5 years rather than 6 years earlier.
6. There has been no change in Senior Citizens Savings Scheme;
The dates from which the new rules and rates would be applicable is yet to be disclosed.