Previous interest rates on postal savings restored

FT ONLINE 

The government has restored the interest rates for various deposit schemes of the Post Office Savings Bank to what they were before.

The Internal Resource Division of the Ministry of Finance revealed this through a directive issued on Monday.

According to the directive, the interest on three-year fixed-deposits will be 11.28 percent per year on maturity, while the interest on two-year deposits will be 10.70 percent and that on one-year deposits will be 10.20 percent.

The reinstated interest rates take effect from on Tuesday.

Earlier on February 13, the government had lowered the interest on postal saving schemes by almost half, sparking widespread criticism by depositors.

However, after extensive discussions, the government was convinced that the reduced interest would discourage people from using the schemes.

Against such a backdrop, Finance Minister AHM Mustafa Kamal on February 26 committed that the government would restore the previous interest rates on postal savings from March 17.

According to the new directive, interest rates on saving deposits in post office with one to three years terms will be between 9 and 10 percent. The rates had been reduced to 4 to 5 percent earlier.