Post office deposits to fetch higher interest

The government today announced higher interest rate on some post office deposits for the financial year 2014-15. The new rates would be effective from April 1, 2014.

The one-year time deposit in post offices will now fetch 8.4 per cent from 8.2 per cent. The rates on 2-year and 3-year deposits have been revised higher to 8.4 per cent. The 5-year deposits would fetch 8.5 per cent from 8.4 per cent.

The interest rate on other small saving schemes, inducing the Public Provident Fund, has been kept unchanged.

The government revises interest rates on small saving schemes every financial year according to the recommendations of the Shyamala Gopinath Committee.