Post Office savings bank deposits likely to fetch 4% interest

NEW DELHI: A government committee has suggested raising interest rates on Post Office savings bank deposits to four per cent, a suggestion that could benefit lakhs of small depositors.

The Committee on Small Savings also recommended linking returns on other small savings schemes with interest rates on government securities.

It has also suggested that Kisan Vikas Patra (KVP) be withdrawn and annual investment limit for the popular Public Provident Fund (PPF) be raised to Rs 1 lakh from Rs 70,000 at present.

The committee recommended that interest rates for Post Office savings deposits be raised to four per cent from 3.5 per cent at present, in line with the Reserve Bank's decision to hike rates on savings bank deposits.

source : TOI