Post Office has reduced the interest rates of this scheme, know how much return you will get now
The post office has reduced the interest rates of its TD i.e. Time Deposit Scheme. TD accounts are opened in the post office for 1 year, 2 year, 3 year and 5 year tenures.
Post Office Savings Schemes: The post office has finally cut the interest rates on savings schemes. The post office has cut the interest rates much after the Reserve Bank of India reduced the repo rate, while all the banks of the country started cutting the interest rates of FDs as soon as the repo rate was reduced. Let us tell you that the Reserve Bank of India has cut the repo rate by 1.00 percent this year. RBI has made this cut 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. TD accounts of 1 year, 2 years, 3 years and 5 years are opened in the post office. 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 all three tenures of 1 year, 2 year and 3 year TD.
Post office is still giving more interest than bank FD
The post office has certainly reduced the interest rates on TD, but it is still higher than the interest rates given by the top banks of the country on FD. The country’s largest government bank – SBI is giving its customers 6.25 to 6.75 percent interest 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 to senior citizens on FD than the general citizens, whereas the post office gives the same interest to all customers.
Disclaimer: This article is written for informational purposes only. Consult your financial advisor before making any kind of investment or taking any financial risk. India TV will not be responsible for any kind of risk.
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