Last week, Finance Ministry has revised the interest rates on post office saving schemes in India. These revised interest rates on post office schemes would come into effect from 1st April, 2014. The rate hike decision is in line with the recommendation given by Shyamala Gopinath committee, which they felt that such hike in rates for small saving schemes will make these schemes more attractive and sync with market rates. Here is the quick summary of what has changed along with details of other saving schemes too.
Also Read: Complete guide on post office saving schemes in India
Revised rates for post office schemes from Apr-2014
1) Rates are revised for recurring deposits and term deposits only.
2) Recurring deposit rates for a 5 year deposit hike from 8.3% to 8.4% per annum.
3) For 1 and 2 year term deposit, interest is hiked from 8.2% to 8.4% per annum
4) For the 3 year term deposit, interest rate revised from 8.3% to 8.4%
5) For a 5 year term deposit, rates are revised from 8.4% to 8.5% per annum
Net summary is the rates are hiked only for recurring deposits and term deposits (fixed deposits). There is no change in interest rates for other schemes.
Complete summary of schemes with the old rate and revised rate (effective from 1st April, 2014)
Conclusion: Recurring and fixed deposits offered by Post office offers good interest rates, which are more or less in line with bank rates. Yes, some private banks offer high interest rates, however looking at the safety offered by the post office, these post office small saving schemes are definitely attractive.
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Suresh
Post office saving schemes revised interest rates from 1-Apr-2014
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sir the interest rates revised from august 2016 not updated ==still I found rates w e f 1 4 2014 ==plese update whenever revised== b s kumaraswamy