News About Post Office FD Rates

• India Post Payments Bank begins operations

  On Monday, the government of India launched the India Post Payments Bank (IPPB), the pilot program has been launched in Raipur and Ranchi with IPPB providing basic financial services. By the end of September the government aims to expand the IPPB network to 650 branches, the new branches will be co-located with existing post offices. Payments Banks accept limited deposits and offer payment services, but do not offer any credit services such as loans or credit cards. The India Post Payments Bank is the second of its kind in the country to begin operations, the first payments bank in India was launched as Airtel Payments Bank. The e-payments company PayTM has also received a license from the Reserve Bank of India (RBI) to open a payments bank and is expected to start operations soon. Due to the lower overhead costs of payments banks, they might pose a challenge to traditional banks for smaller amounts of deposits. These new payments banks will offer basic financial services, current and savings accounts with a ceiling limit of Rs.1 lakh, distribution of mutual funds, insurance and pension products, the payments banks will also act as a correspondent to other banks for credit products to service rural areas and other underserviced areas of the country. IPPB will offer three different types of accounts to its customers, Safal, which is a regular account, Sugam, which is a basic savings account and Saral, which is a small savings account. All three accounts require the customer to make a Rs.100 initial deposit and do not have a minimum balance requirement. The Safal and Sugam accounts require the KYC details of the customer and the Saral account does not require the KYC details of the customer, as the Saral account is targeted to customers new to banking. The interest rates for deposits with a quarterly average balance of Rs.25,000 is 4.5%, for deposits with a quarterly average between Rs.25,000-Rs.50,000 the interest rate is set at 5% and for deposits above Rs.50,000 the interest rate is set at 5.5%.

  

  9th February 2017

• Time Deposit Rates of India Post Office

  The Indian Post Office, being a widely distributed postal network, offers several savings schemes to encourage the common man to invest for the future. The term deposits offered by the Post Office are available for different tenures at competitive interest rates. Post the directive issued by the Reserve Bank of India, the Post Office has revised its rates.

  Though the interest is paid on an annual basis, the calculation is done quarterly. For the period of 1 year, the interest rate applicable is 7.1%. For other tenures, namely 2 years, 3 years, and 5 years the rates of interest computed are 7.2%, 7.4%, and 7.9% per annum, respectively. These revised rates are applicable from April 01, 2016.

  

  4th April 2016

• Government may slash Post Office Saving Interest Rates

  The Finance Ministry is expected to take a call on interest rate, based on the government’s move to slash interest rates on various small savings like Post Office savings by the end of December.

  Several banks and the RBI are calling in for reduction in small savings rates and bring them in line with market rate. According to sources, cuts in rate of interest can prove effective in transmission of monetary policy. At the current rate of 8.7-9.3% in small saving deposits, banks aren’t quite keen in transmitting the entire policy rate reduction by Reserve Bank to borrowers.

  Smalls saving schemes include Post Office Monthly Income Scheme (MIS), PPF, Post Office fixed Deposit Scheme, Senior Citizen's Savings Scheme, Post Office Savings Account and Sukanya Samriddhi Accounts.

  As per sources, a final decision on the interest rates of various small saving schemes after review may be taken towards the end of the month, sources said.

  

  7th December 2015