The government has clarified that interest rates of different savings schemes with Post Office Savings Bank were lowered, not that of any savings certificate.
The Ministry of Finance issued the clarification on Sunday.
Earlier on February 13, the Internal Resources Division of the Finance Ministry issued a circular on lowering interest rates of different savings schemes with Post Office Savings Bank.
It was mentioned in the circular that the interest rates of the Post Office Savings Bank have been slashed to that of other state-owned banks.
However, the interest rates of government’s savings certificates remain the same, the circular said.
The interest rate on three-year fixed deposit with the Post Office Savings Bank was cut down to 6 per cent from 11.28 per cent on maturity.
The interest rate for the first year and second year of the deposit was reduced to 5 per cent and 5.5 per cent from previous 10.20 per cent and 10.70 per cent respectively for encashing before the maturity.
The interest rate on savings in case of normal accounts was fixed at 5 per cent from 7.5 per cent.