Kerala - Alappuzha   

Treasury hikes interest rates

ALAPPUZHA: Three-year fixed deposits in the State Treasury will fetch an interest of 11 per cent with effect from Wednesday while deposits by senior citizens will get 11.5 per cent for the same duration.

Announcing this here on Wednesday, Finance Minister T.M. Thomas Isaac said the move was aimed at attracting more public deposits, at least to the tune of Rs.1,000 crore in a year, and to use the same for infrastructure development in the State.

Deposits for a period of two to three years would now fetch an interest of 10.5 per cent, while those for one to two years would get 10 per cent. The existing rate for both these categories was nine per cent. Fixed deposits from 180 days to one year would have the rate hiked from eight per cent to 8.5 per cent.

The revised rates would be applicable to all new deposits while existing ones had to be renewed to benefit from the revisions, Dr. Isaac said.

This is the second time this year that the State has hiked treasury deposit interest rates. In January, the rate for three-year fixed deposits was hiked from nine to 10 per cent interest. Senior citizens, for the first time in the State, were offered a special rate of 10.5 per cent for three-year deposits from January onwards.

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