The Hindu Business Line : Post office: Saviour of savers

This refers to `Post office is savers' best bet' (Business Line, August 16). The deposit figures under small savings schemes that surpass the Budget estimates denote the craze among the ordinary depositors for a safe and gainful savings theme. No wonder post-offices remain attractive to the real savers and for those who live on their savings.

The government would do the right thing to make small savings schemes more attractive by raising the interest rates by half a per cent or so. The excess time deposits thus garnered by the government could be used for liquidation of costlier loans taken by the government at higher interest.

The growth under such designated schemes as NSC and PPF may be not as attractive as in previous years. This is simply because all these facilities were used by the income-tax payers.

There was a visible stagnation in the growth of these schemes for the past 4-5 years due to the disinterest by the taxpayers.

Even with the present rate of returns, the post-office deposits would be first priority for the depositors.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

More Stories on : Letters | Small Savings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Regulating medical clinics

Inflation dynamics: Why fight shy of it?

Jarring notes in the sweat equity regime

Oil barrels that went missing and a director tired of lying

Consent is bone of contention

An olive branch that extends to oil

Goalposts are moving but it is riskier to do nothing

Post office: Saviour of savers

Phase out farm subsidies