Interest Rates on Small saving

Interest rates on saving deposits, cumulative time deposits and other categories of deposits in post offices are fixed from time to time by the government in consultation with the Reserve Bank. These rates are marginally higher than those offered by commercial and co-operative banks in order to attract the small savers and to encourage the flow of savings into the government sector. Similarly, interest rates on various categories of national savings certificates, social security certificates etc. are fixed higher, as they are for lump sum investments and meant for small savers.