Deposit in this govt institution to get good returns, interest increased to overcome financial crisis

THIRUVANANTHAPURAM: The state government has increased the interest rate on treasury fixed deposits with a maturity of 91 days to 180 days from 5.90 percent to 7.5 percent. This benefit is for investments made from March 1 to 25.

The current rate is 5.4 percent for deposits up to 90 days, 6 percent for deposits from 181 days to 365 days, 7 percent for one year to two years and 7.5 percent above. There is no change in this.

More than Rs 22,000 crore is needed to overcome the financial crisis in March due to reduced credit availability of the state government and reduction in central government funds. The Centre has assured that Rs 13,608 crores will be made available. The interest on short-term deposits in the treasury has been increased to find the remaining amount. The finance department is also trying to raise more funds from cooperative banks and government-run institutions.