New Delhi: The government has withdrawn the popular 6.5 per cent tax-free savings bonds according to a finance ministry circular. The scheme was popular with the salaried class particularly the senior citizens. The scheme had a ceiling on deposit of Rs 2 lakh.

But many investors had moved their money to other savings schemes enjoying 9 per cent interest.

The scheme was withdrawn as the government has now introduced a new scheme for senior citizens carrying an interest rate of 9 per cent.

The tax-free scheme had a corpus of Rs 20,000 crore.