You either set the benchmark or follow the herd. India Post, the last candidate that you’d expect to set a benchmark, has decided to follow the herd; after the herd has left for a new place. Banks’ used to offer 4% interest rate on Savings account, while the same in Post Offices’ used to fetch you 3.5% till now. With the de-regularization of Savings bank interest rate by RBI, most banks’ now have decided to increase their interest rate (some banks’ such as YES and Kotak Mahindra already did).
Now, India Post has finally decided to increase its savings account interest rate to 4%.
Sure, this doesn’t make a difference to most of you since you don’t even know that Post offices offer deposit schemes. But for those in rural areas, it’s the Post Offices that act like banks’. A half percent increase in interest rate is definitely a welcome move, as recommended by the Syamala Gopinath committee.