Rush at post offices as many invest in schemes before financial year-end
Post offices across the city witnessed rush on Thursday as a large number of people turned up to invest in the public provident fund (PPF) and other saving schemes on the last day of the financial yeargurgaon Updated: Mar 31, 2016 23:46 IST
Post offices across the city witnessed rush on Thursday as a large number of people turned up to invest in the public provident fund (PPF) and other saving schemes on the last day of the financial year.
Officials at the post offices said the day sees huge rush every year as people want to invest before the end of the financial year so that they can avail rebate in tax that year itself. But the rush was higher this year as the interest rates on small saving schemes are expected to come down the next financial year, the officials said.
Anticipating the rush, the postal department had instructed offices to remain open till 10pm.
The interest rates that post offices offer for its saving schemes are generally higher than that offered by banks and so people prefer to invest in these schemes.
National Savings Certificate, Kisan Vikas Patra, Sukanya Samradhhi Scheme are some of the popular saving schemes offered by post offices.
Some applicants at the post office said though they planned to open saving accounts and invest in certificates next year, they learnt that the interest rates on these schemes may be reduced next financial year and so they decided to invest this year only.
“I got to know that the interest rates are going to be lowered. So I applied for a three-year deposit today. By investing on the last day of the financial year, I made sure that I will get returns as per the present rate,” said Deeraj Gupta, an applicant.
CS Arora, head postmaster of the Gurgaon Sadar Bazar post office, said: “This (rush) is an annual phenomenon. But this year, we witnessed more-than-usual rush as people think that the interest rates will be lowered next financial year. However, we have not received any confirmation about it yet. Nearly 800 people visited the post office on the last day of the financial year to invest in saving schemes.”