The government has increased interest rates on General Provident Fund, GPF, State Provident Funds and Special Deposit Scheme, SDS, for the current financial year to 8.8 per cent. The rates were currently at 8.6 per cent. An official statement said the new rates will be applicable from April this year.

The revised interest rates on government provident funds will benefit the subscribers of General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund and General Provident Fund (Defence Services), the Indian Ordnance Department Provident Fund, the Indian Ordnance Factories Workmen’s Provident Fund, the Indian Naval Dockyard Workmen’s Provident Fund, the Defence Services Officers Provident Fund and the Armed Forces Personnel Provident Fund.

The government on Monday raised interest rates on post office-operated small savings like Monthly Income Scheme (MIS) and Public Provident Fund (PPF) by up to 0.5 per cent. The objective is to make them more attractive to investors. An official release said interest rates on time deposits of one and two years have been increased by 0.5 per cent each to 8.2 per cent and 8.3 per cent. 

Rates for popular MIS has been hiked by 0.3 per cent to 8.5 per cent. Interest rate on PPF has been increased by 0.2 per cent to 8.8 per cent. 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 per cent.