Post Office Savings Schemes: Ever since the Reserve Bank of India cut the rerate rates, banks and post offices have also started reducing the interest rates on the schemes. Now the post office has announced a cut in the interest rates on savings schemes. This has come as a big shock to the people associated with the savings scheme.
The post office has reduced the interest rates on time deposits, which is bad news for investors. A few days ago, the Reserve Bank of India had reduced the repo rate by 0.25 per cent in February, then 0.25 per cent in April and 0.5 per cent in June. The effect of which has started affecting the common citizens as well.
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Less interest will be available on TD.
The post office has given a shock to the people associated with the scheme. A decision has been taken to reduce the interest rates on the post office’s TT.D.D, i.e. time deposit scheme. The work of opening time deposit accounts from 1 year to 5 years is done in the post office.
Earlier, the post office was giving 6.9 per cent interest on 1-year TD, 7.0 per cent on 2-year TD, 7.1 per cent on 3 years and 7.5 per cent on 5-year TD. After the new change, now only 6.9 per cent interest will be given on TD of 1 year, 2 years and 3 years, i.e. all three periods. This reduction is considered a shock for the customers. Still, more interest is being given by the post office than bank FD.
The post office is still giving more interest than a bank FD
The post office may have reduced the interest rates on the time deposit scheme, but it is much more than the interest given by banks on an FD. Even SBI, which is counted among the big and government banks of the country, does not give this much interest to its customers on FD.
Disclaimer
For your information, the post office has published the news about the interest on time deposits based on India TV. Our aim is not to confuse anyone but to give information. You should consider it appropriate to invest in the post office’s TD scheme only after gathering information.