Japan's Postal savings down 2.6% at fiscal year-end

The balance of Japan’s “yucho” postal savings at the end of fiscal 2002 was down 2.6 pct from a year before at 233,192.4 billion yen, Japan Post said Tuesday.

The balance fell for three consecutive years, after dropping for the first time ever in fiscal 2000.

The decline was prompted by a continuing massive outflow of matured “teigaku” fixed-amount savings.

The amount of teigaku savings that matured during fiscal 2002 ended Monday totaled 18 trillion yen. Of this, only 7 trillion yen, or 39 pct, was redeposited in teigaku savings or “teiki” time deposits.

On the other hand, the balance of ordinary savings increased 3.5 trillion yen during the year.

Funds are flowing into ordinary savings from teigaku and teiki savings as savings accounts with greater liquidity continued to attract depositors at a time when interest rates remain at rock-bottom levels, officials at Japan Post said.