The government has increased interest rates on deposit schemes offered by post offices, like savings account, Monthly Income Scheme and Public Provident Fund in a bid to boost small savings. An official release said that Post Office savings accounts will fetch 4 per cent interest instead of the existing 3.5 per cent. The Monthly Income Scheme, MIS and the Public Provident Fund, PPF will earn an interest of 8.2 per cent and 8.6 per cent. The rate of interest in the one-year fixed deposits has been increased from 6.25 per cent to 7.7 per cent. The new rates will be applicable from the date of notification which will be announced soon. However, the government has decided to discontinue the Kisan Vikas Patras. The maturity period for MIS and National Saving Certificates has been lowered to five years from the existing six years. The decision to hike interest rates will make small savings schemes more attractive and returns would be in sync with market rates. It also introduced the National Savings Scheme with 10-year maturity. The annual investment ceiling in PPF savings has been increased to one lakh rupees from the present limit of 70,000 rupees.