Interest rates on bank deposits are not uniform and vary from bank to bank. Hence, a one-on-one comparison of interest rates may not be possible.

The interest rates on term deposits are deregulated and they are determined by the banks themselves as per their Board approved policies. In contrast interest rates on Small Savings Schemes are administered interest rates linked to G-Sec rate of comparable maturity.

The percentage of savings in the savings schemes in Post Office as on 31.03.2016 is 14.84% of the deposits in the savings schemes of PSBs.

The Government has taken various steps to popularise all the existing schemes by carrying out publicity through print and electronic/Audio Visual media on an all India basis. Jan Dhan Yojana is a scheme of the Government to encourage deposits in banks and promote savings.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Administered interest rates on small savings linked to government securities, shaping post office deposit competitiveness. Bank term deposit rates are deregulated and determined by banks under Board approved policies, whereas administered interest rates for Small Savings Schemes are linked to government securities of comparable maturity; this contrast affects the pricing and competitiveness of post office deposits. The government has promoted existing savings schemes through nationwide publicity and financial inclusion measures, including the Jan Dhan Yojana, and post office savings accounted for a significant share of savings scheme deposits.