economy

PO, small savings a/c openings at a 3-year low

PO, small savings a/c openings at a 3-year low

MUMBAI : The number of new accounts opened for post office (PO) savings, time deposits and various other small savings schemes dropped to a three-year low in FY21, the government told the Lok Sabha. Provisional data for FY22 till November shows a continuation of the slowdown, it said in reply to a question. In total 46.5 million small savings accounts were opened in FY19. This dropped to 41.2 million in FY20 and further to 41.1 million in FY21. Data for FY22, which only includes small savings accounts opened with the post office (and thus excludes banks) shows only 23.3 million accounts have been opened so far this year. The steepest fall over the past three years has been in post office savings account openings. These dropped from 11.8 million in FY19 to 7.2 million in FY21. Public Provident Fund (PPF) saw a rise in FY20 and a drop in FY21. PPF account openings rose from 1.15 million to 2.72 million in FY20 before dropping to 1.96 million in FY21. In FY22, PPF account openings stood at just 300,000. Small savings rates have trended downwards over the past three years. The one-year post office time deposit carried a rate of 6.6% in Q1FY19. It currently (Q3FY22) carries a rate of 5.5%. The three-year post office time deposit saw its rate drop from 6.9% to 5.5% over the corresponding period. The PPF rate fell from 7.6% to 7.1% over this period. However they remain above bank FD rates. Download.

economy 2021-12-14 Livemint