Bank fixed deposits would continue to remain more attractive for savers than long-term deposits under small savings schemes of post office despite the hike in interest rates proposed by the government panel.

At the current market condition, the term deposit rates are as much as 50 basis points higher than the returns offered by small savings scheme as recommended by the Committee headed by RBI Deputy Governor Shyamala Gopinath.

For instance, five-year fixed deposit rate under small savings scheme will fetch 8 per cent if the government accepts the suggestion of the panel.

However, interest rates offered by the banks for same maturity period is about 8.5 per cent, 50 basis points higher than what has been recommended by the panel recently.

Currently, five-year term deposits in the post offices earn 7.5 per cent. (PTI)