Money-wise: Small savings outpace bank deposits

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Published: December 4, 2019 1:43:05 AM

According to a recent Citi report, while leading banks paid 6.25-7.25% for one-year term deposits in November 2019, small savings schemes offered up to 8.6% in the same month.

Bankers and analysts are of the view that reductions in bank deposit rates may have led some depositors to opt for the higher-yielding small savings schemes.

Deposits in small savings schemes have been growing much faster than bank deposits over the last few years. Bankers and analysts are of the view that reductions in bank deposit rates may have led some depositors to opt for the higher-yielding small savings schemes.

According to a recent Citi report, while leading banks paid 6.25-7.25% for one-year term deposits in November 2019, small savings schemes offered up to 8.6% in the same month.

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