Post Office Savings : In Jeopardy

In Jeopardy The appeal of post office savings endures. The mobilisation of savings under various government-run post office schemes has continued to chart a steady growth through the 1990s, into the present decade, in spite of a continual decline in interest rates. Part of the appeal of post office savings lies in the attractive rates of interest they offer, in comparison to bonds or fixed deposits of scheduled commercial banks. However, the perception in Indian households, that they are the safest way to invest, in no small measure contributes to the immense popularity of small savings instruments, and of post office schemes in particular. Other factors such as the formidable network of post offices (1.4 lakhs) across the country, easy accessibility, familiarity and a less intimidating environment certainly adds to its popularity.