Payments of revised commission to SAS and MPKBY agents and discontinuation of commission to PPF agents will be effective from 1 December 2011
The ministry of finance has notified that the revised rate of commission payable to SAS and MPKBY agents and discontinuation of commission to PPF agents will be effective from December 1.
Following are the revised rate of commission: Name of Scheme Rate of Commission Recurring Deposit (MPKBY) 4% 1 Year Time Deposit 0.5% 2 Year Time Deposit 0.5% 3 Year Time Deposit 0.5% 5 Year Time Deposit 0.5% Monthly Income Account Scheme 0.5% 5 Year NSC 0.5% 10 Year NSC 0.5% Sr. Citizen Savings Scheme NIL PPF NIL
Furthermore, the annual ceiling on investment under PPF has been increased from Rs. 70, 000 to Rs. 1 lakh and the interest on loans obtained from PPF is increased to 2% p.a. from the existing 1% p.a. while Kisan Vikas Patras will been discontinued effective December 1. The notification also states that the maturity period of the NSC and MIS has been revised to 5 years from the existing 6 years.
Also, pre-mature withdrawal of post office time deposits after 1 year will attract an interest of 1% less than the time deposits of comparable maturity. However, a pre-mature withdrawal between 6-12 months of investment will be paid a simple rate of interest applicable on post office savings account.
Rate of interest on various small savings schemes for the current financial year effective from December 1:
|
Instrument |
Effective Rate (%) from 1 December 2011 |
|
Savings Deposit |
4 |
|
1 Year Time Deposit |
7.7 |
|
2 Year Time Deposit |
7.8 |
|
3 Year Time Deposit |
8 |
|
5 Year Time Deposit |
8.3 |
|
5 Year Recurring Deposit |
8 |
|
5 Year MIS |
8.2 |
|
5 Year NSC |
8.4 |
|
PPF |
8.6 |
|
Payment of 5% bonus on maturity of MIS will be discontinued. | |
