Government of India has announced Interest rates of Post Office schemes for 2014-15. Government has increased interest rates on few popular post office schemes to make them more competitive with bank fixed deposits. These rates will be effective from 1st April 2014.
These changes are done just before lok sabha election to attract voters. Interest rates for fixed deposits for one and two years has been increased from present 8.2% to 8.4%.
Minor change of 0.1% is done for fixed deposit of three and five years. The interest rate on five-year recurring deposits has also been raised to 8.4%, up from 8.3%.
Interest rates on Simple saving deposit remain unchanged and it shall be 4% per annum.
Interest rates on National saving scheme (NSC) with 5 and 10 year maturity also remain same 8.5% and 8.8% respectively.
Interest rates for most popular post office scheme MIS (Monthly Income Scheme) also remain unchanged at 8.4%. PPF (Public Provident Fund) shall also bring same return 8.7% in 2014-15.
Below Table gives you complete idea about Interest rates of Post Office schemes 2014-15