India Post Payments Bank (IPPB) offers 3 types of savings accounts. Which one to choose?

None of the three India Post Payments Bank (IPPB) savings accounts allows you to open a joint account. You also don’t get a cheque book, debit card or ATM card but a QR card, which allows you the benefit of all three.

India Post Payments Bank (IPPB), which started functioning this month, is offering 3 types of zero-balance savings accounts with multiple benefits, including unlimited withdrawals and deposits besides doorstep banking.

All the 3 IPPB savings accounts offer some common features and benefits, including 4% interest rate, no minimum balance, etc. As per RBI rules, you can’t hold more than Rs 1 lakh in all payments bank accounts but you can open a post office bank account where any amount in excess of Rs 1 lakh will be transferred.

None of these IPPB savings accounts allows you to open a joint account. You also don’t get a cheque book, debit card or ATM card but a QR card, which allows you the benefit of all three.

India Post Payments Bank (IPPB) account can be opened both through a mobile app as well as at the post office. The digital savings account is however valid for only 12 months unless a biometric authentication is done.

Here is a look at the 3 types of IPPB savings accounts and how to choose the one that suits you.

Digital savings account:

If you don’t have the time to visit a post office to open an IPPB account, for which you may have to stand in a queue, then you can download the IPPB app and open a digital savings account instantly and in a paperless manner.

All you need is your PAN card number and Aadhaar card number. After inputting both, you get an OTP on your linked mobile number to open the instant bank account.

However, the digital savings account is valid only for 12 months. Within a year of account opening, you are supposed to complete biometric authentication for the account after which it will be converted into a regular savings account.

Minors are barred from opening a digital savings account. Also your total deposit cannot cross the Rs 2 lakh limit in the year.

Basic savings account:

The Rs 2 lakh limit isn’t applicable here but your account balance can’t be more than Rs 1 lakh. You also get access to mobile banking and QR card. The excess balance will be transferred to your post office account if the two are linked.

Although you can make unlimited deposits, you cannot make more than 4 withdrawals from a basic savings account.

There is no requirement of any initial deposit nor do you need to maintain any minimum balance.

Regular savings account:

Among all the three savings accounts, this one provides the most benefits provided you don’t mind going to a post office or contacting a postman to open the account.

Once the account is opened you get a QR card for making payments and withdrawing cash. Even minors above 10 years are eligible to open a regular savings account with just a PAN card, Aadhaar card and biometric verification.

You also enjoy the benefit of no cap on withdrawal and deposit provided the maximum balance doesn’t go above the limit of Rs 1 lakh.