Conservative borrowers have a reason to rejoice now. The finance ministry has recently notified that the investment limit on the Public Provident Fund (PPF) has been raised to Rs 1 lakh annually from Rs 70,000 earlier.

The interest rate for PPF has also been given a boost up from 8% earlier to 8.6% now.

The dates from which the new rules and rates would get applicable is yet to be disclosed by the ministry.

Also, small savings schemes will see a pump up in interest rates thereby bringing in more smiles to the customer.

The interest rates on these schemes will correspond to the rates prevailing with government securities of similar tenor having a spread of 25 bps on both sides.

However, the 10-year National Savings Certificates will have a spread of 50 bps and the Senior Citizens Savings Scheme by 100 basis points.

The tenor of maturity of monthly income scheme (MIS) of post office and NSC will now be 5 years rather than 6 years earlier.