11th November, 2011 turned out to be an interesting day for small savings schemes, and for the Public Provident Fund scheme in particular.
The earlier maximum investment of Rs. 70,000 per annum was increased to Rs. 1 lakh per annum, therefore making it the same as the maximum allowed Section 80C investment.
Not only that, but the interest rate of 8.00% was also hiked to 8.60% initially, followed by a further hike to 8.80% effective 1st April, 2012. Interest on the PPF is subject to change annually.