Money flows to PO deposits again as bank FD rates fall to below 7%

Sharp cuts in bank deposit rates in the last one year have prompted investors to sift a portion of their money to traditional products like government bonds and post office time deposits, which offer higher rates. Fixed deposit rates of top banks have fallen by an average 0.5-1 per cent to 6.5-7.1 per cent. In comparison, government bonds and post office deposits of longer durations are fetching about 7.5-7.75 per cent.

With interest rates expected to fall further, investors are looking ..