Interest rate for Kerala State Treasuries Department's fixed deposits to go down

The new rate for deposits for one year and above is 7.50 per cent for general category and 8 per cent for senior citizens.

Published: 17th December 2018 03:16 AM  |   Last Updated: 17th December 2018 11:47 AM   |  A+A-

Rs 2000, cash,money

For representational purposes (File | Reuters)

By Express News Service

THIRUVANANTHAPURAM: The Kerala State Treasuries Department is further slashing the interest rate for fixed deposits for the second time in two months.

The new rate for deposits for one year and above is 7.50 per cent for general category and 8 per cent for senior citizens. For deposits of 180 days and above but below one year, the interest rate in general category is 6.50 pc and senior citizens 7 pc. The new rates will be applicable from January 1, 2019.

The consecutive decrease in the interest rate has disappointed prospective depositors. A good number of the FD holders in the treasuries are well-paid pensioners and government employees who would make multiple deposits within a single year.

According to Finance Secretary Manoj Joshi, the government spends huge amount as interest rate to these FDs. “Periodical rate adjustments are inevitable to maintain fiscal prudence,” he told Express.As per the data obtained in August, the department had about 5.86 lakh fixed deposit accounts and a total deposit of Rs 14,000 crore.

The Treasuries Department does not expect a fall in new deposits since the rates are well above that of nationalised banks.  While in the previous revision depositors between 180 days but below one year were spared, it did not happen in the latest revision.

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp