The post office has reduced the interest rates of its TD i.e. time deposit scheme. TD accounts of 1 year, 2 years, 3 years and 5 years are opened in the post office.
Post Office Savings Schemes: The post office has finally reduced the interest rates offered on savings schemes. The post office has reduced the interest rates much after the Reserve Bank of India reduced the repo rate, while all the banks of the country started reducing the interest rates of FD as soon as the repo rate was reduced. Let us tell you that the Reserve Bank of India has already reduced the repo rate by 1.00 percent this year. RBI has made this reduction in 3 times. The central bank first reduced the repo rate by 0.25 percent in February, then by 0.25 percent in April and then by 0.50 percent in June.
Post office reduced the interest rates of time deposit
The post office has reduced the interest rates of its TD i.e. time deposit scheme. Post offices open TD accounts for 1 year, 2 year, 3 year and 5 year tenures. Earlier, the post office was giving 6.9 percent interest on 1 year TD, 7.0 percent on 2 year TD, 7.1 percent on 3 year TD and 7.5 percent on 5 year TD. However, after this latest change, now only 6.9 percent interest will be available on TDs of 1 year, 2 year and 3 year tenures.
Post office is still giving more interest than bank FDs
The post office has certainly reduced the interest rates on TD, but it is still higher than the interest rates given on FDs by the top banks of the country. The country’s largest government bank – SBI is giving its customers interest ranging from 6.25 to 6.75 percent on 1-year FD, 6.45 to 6.95 percent on 2-year FD and 6.30 to 6.80 percent on 3-year FD. Let us tell you that the bank gives 0.50 percent more interest on FD to senior citizens than to general citizens, while the post office gives the same interest to all customers.
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