The government today raised interest rates on post office-operated small savings like Monthly Income Scheme (MIS) and Public Provident Fund (PPF) by up to 0.5%, making them more attractive to investors.
Interest rates on time deposits of one and two years have been increased by 0.5% each to 8.2% and 8.3% respectively, while rates for popular MIS has been hiked by 0.3% to 8.5%, an official release said.
Interest rate on PPF has been increased by 0.2% to 8.8%.
The new rates will be effective from April 1, 2012 and will remain valid during 2012-13.
There has been no change in the savings deposit rate which has been retained at 4%.
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