Postal deposits

The monthly income scheme in post offices was introduced mainly to help senior citizens. At that time, nationalised banks offered five-and-a-half to six per cent interest on their deposits. The post offices offered eight-nine per cent and the period of deposit was six years. A 10 per cent bonus was offered at the time of maturity.

Now that the nationalised banks pay an interest of up to 10 per cent, some are inclined to close their postal deposits before maturity. But in the process, they have to forego one-and-a-half per cent interest and the bonus. The Finance Minister has imposed an additional penalty on premature payments. This is a punishment for senior citizens.

They should be allowed to withdraw their postal deposits without any deduction if they transfer them to nationalised banks. The post offices can issue a cheque favouring the bank in which they intend to deposit the money.

B. Srinivasan,