Interest Cut in Savings Accounts
Post office faces crunch as depositors withdraw cash
Many savings account clients are failing to get their money upon demand due to serious cash flow problem in Barisal Head Post Office.
Following government decision to reduce interest on different savings accounts and levy ten per cent tax on the interest earned, a good number of depositors have decided to withdraw cash from their accounts, Md Mohsin Uddin, head postmaster of Barisal Head Post Office, said.
At present clients' demand for cash ranges from Tk 30 to Tk 68 lakh daily and so, the government allotted fund of Tk 3 crore for August was exhausted within 10 days.
Due to the cash shortage, clients and staff of the post office often engage in bitter arguments.
"We have been instructed to refund money to the clients from collections through daily deposits. But the daily deposit does not exceed Tk 22 lakh on an average. So we have asked for an urgent allotment of Tk 2 crore," said the head postmaster.
Till June 2010, there were 3,97,348 savings account clients including 2,75,666 general savings account holders, 99,143 periodic savings account holders and 17,576 savings certificate owners, post office sources said.
Besides, there were 2,618 five-year fixed deposit accounts, 2,238 pension scheme savings accounts and 107 family savings certificate holders.
Meanwhile, family savings certificates now sees high demand as those are exempt from taxes.
Many people are trying to buy family savings certificates after cashing their other savings but the supply is much short of demand, Mohsin said.
"Clients have to wait for days and maintain serial to get their money refunded. We are facing losses due to delay," said Abdullah Khan, a saver with the post office.
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