Shyamala Gopinath Committee recommendations: Interest rates on FDs offered by Post Offices hiked by 0.2%
The Union Government decided to hike interest rates on fixed deposit schemes offered by post offices by up to 0.2 %. The decision to hike interest rates is taken on the recommendations of Shyamala Gopinath Committee.
As per the Shyamala Gopinath Committee’s recommendations
- The interest rate on fixed deposits for one and two years has been increased to 8.4% from the present 8.2%.
- Fixed deposits of three and five years will earn 0.1% higher rate at 8.4% and 8.5%.
- The interest rate on five-year recurring deposits will be 8.4% from 8.3%.
- The rate on National Savings Scheme (NSC) with 5 and 10 year maturities also remain unchanged at 8.5 % and 8.8 %.
- The rate on five-year Monthly Income Scheme (MIS) remains the same at 8.4 %. The savings deposit rates are kept unchanged at 4 %.
- Though, the interest rate on Public Provident fund (PPF) has been kept unchanged at 8.7 %.
The new interest rates on small savings schemes will come into effect from April 1, 2014.