POST OFFICE DEPOSITS SURGE ON INTEREST, SAFETY SCORES

Due to cutting of deposit interest rates by the banks,  Post Office deposits are showing rapid growth on account of its steady interest rates coupled with assurance of the safety of the principal. During the six months period ended September 2009, total investments in various postal deposit schemes grew by 32% while the scheduled commercial banks recorded a growth of 7.5% only. The main reasons for the attraction of the investors towards Postal Deposit Schemes are higher interest rates, income tax benefits, loan facilities and bonus on maturity on some of the deposit schemes.

Source: http://www.thehindubusinessline.com/2009/12/12/stories/2009121253540100.htm