India Post and India Post Payments Bank offer different types of savings accounts. India Post Payments Bank – launched earlier this month – provides three types of savings accounts: regular, digital and basic. India Post, which has a network of more than 1.5 lakh post offices across the country, provides several banking and remittance services, such as the Post Office Savings Account. All four savings accounts earn interest at the rate of 4 per cent on deposits compounded on a quarterly basis, according to India Post. While the three types of savings accounts in IPPB do not require any deposit, the Post Office Savings Account required a deposit of “rupee”Rs.20.
Here’s a comparison of the three types of savings accounts provided by IPPB and the Post Office Savings Scheme (Post Office Savings Account):
India Post Payments Bank regular savings account
The regular savings bank account offers unlimited cash withdrawals free of cost, according to India Post Payments Bank’s website – ippbonline.com. A regular savings account in IPPB can be opened by either visiting an access point of the payments bank or by applying for the doorstep service. The account can be opened with zero balance and the account holder is not required to maintain any particular balance. IPPB offers facilities such as free quarterly account statement and fund remittance service IMPS. The IPPB regular savings account can also be linked to the post office savings account (POSA), according to the bank.
India Post Payments Bank digital savings account
A digital savings account in IPPB can be opened by using the payments bank’s mobile app. The app is available on Google’s Android platform, according to the IPPB website. The applicant is required to provide details of his or her Aadhaar card along with PAN card.
The customer is required to complete the KYC (know your customer) process within 12 months of opening of account, according to the bank. For this, the customer is required to either visit an access point or contact the postman. After completion of the KYC formalities, the digital savings account will be upgraded to a regular savings account, according to IPPB. The digital savings account does not require the account holder to maintain a particular amount as balance. That means the customer can operate the account with nil deposit. A maximum yearly cumulative deposit of Rs. 2 lakh is allowed in the digital savings account, according to IPPB.
India Post Payments Bank basic savings account
The IPPB basic savings account, aimed at primary banking services, comes with most of the features as the regular savings account. The basic savings account allows four cash withdrawals in a month, unlike the regular savings account which permits unlimited withdrawals. Other than that, the basic savings account offers facilities such as zero balance account opening, free quarterly statement, IMPS and linkage to a Post Office Savings Account, according to the IPPB website.
Post Office Savings Account (POSA)
Other than mailing services, India Post provides Post Office Savings Accountto retail customers as part of its Post Office Saving Scheme portfolio. A Post Office Savings Account can be opened against a cash deposit of Rs. 20, and requires the customer to maintain a balance of at least Rs. 50 without subscription to the cheque facility. For subscription to the cheque facility, the minimum amount required at the time of opening the account and the minimum balance to be maintained in the account is Rs. 500, according to India Post’s website – indiapost.gov.in. The interest income earned on the deposit in the account is tax-free up to Rs. 10,000 in a year, according to India Post. The customer is required to visit a post office to open a Post Office Savings Account.