Yesterday on the eve of the announcement of general elections schedule by the Election Commission,the government announced a hike of 0.20% in the fixed deposit rates offered by post office. However the interest rates of provident fund remained unchanged at 8.7%.
The revised rates on the deposits will be applicable from next month. The amendment has been in the interest rates on the deposits offered by fixed deposits. The interest rate for the tenure of 1-2 year has been increased 0.2%. Further the rate for three to five years has been made to 8.5% from 8.4%. And the rates for recurring deposits have been increased by 0.1% from 8.3% to 8.4%.
The rates for the savings deposits schemes are same i.e. 4%. It has been reported that the rise in rates will make savings scheme more attractive and returns would be in sync with market rates.