India Post Launches Payments Bank – Offers Up to 5.5% Interest Rate on Deposits

Ever since the RBI has conceptualized payments bank, India Post is the first Government owned entity and the third ever entity in the country to launch a payment bank. India Post’s payment bank operations are now available in limited cities starting from Ranchi and Raipur but soon will extend to whole of India.

What is a Payments bank?

A payments bank is one that is solely used for payment purposes and won’t offer loans or credit cards and will only accept deposit of up to 1 Lakh Rupees. It can be used for bill payment purposes etc and will have specialized arrangements with chosen merchants and vendors.

India Post Payments Bank Features

India Post will have different interest rates for deposits of different slabs as mentioned below.

Deposits up to Rs 25,000 – 4.5% Interest
Deposits of Rs 25,000-50,000  – 5% Interest
Deposits of Rs 50,000-1,00,000 – 5.5% Interest

Compared to AirTel Payments bank, these are lower interest rates. AirTel Payments bank offers up to 7.5% interest rates with personal accidental insurance of up to Rs. 1 Lakh.

India Post Payment Bank Account Types& Features

Regular Account – Safal
Eligibility – Anyone with KYC documents and 10+ Years of age
Minimum Deposit Requirement – Rs.100
Maximum Deposit Possible – Rs.1 Lakh
ATM/Debit Card – Free
Annual Maintenance Charges (from 2nd year) – Rs.100
Minimum Quarterly Balance – Nil
Interest Payments – Quarterly
Mobile Alerts – Free
Sugam Account
Eligibility – Anyone with KYC documents and 10+ Years of age
Minimum Deposit Requirement – Rs.100
Maximum Deposit Possible – Rs.1 Lakh
ATM/Debit Card – Free
Annual Maintenance Charges – Rs.100
Minimum Quarterly Balance – Nil
Interest Payments – Quarterly
Mobile Alerts – Free
Saral Account
Eligibility – Anyone with KYC documents and 10+ Years of age
Minimum Deposit Requirement – Rs.100
Maximum Deposit Possible – Rs.50,000
ATM/Debit Card – Free
Annual Maintenance Charges – None
Minimum Quarterly Balance – Nil
Interest Payments – Quarterly
Mobile Alerts – Free

My take on India Post Payments Bank

I think India Post will grow slow and steady unlike private players. Interest rates may be lower but they might have more benefits coming in like tie ups with BSNL, LIC etc. It is easy for them to bring up additional value that way. Eventually, it might end up like BSNL, which doesn’t come up with sharp offers first, but will keep catching up with others if needed. It can stoop down unlike other private players. I am positive about this move.

About the author

Mani Karthik

Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC's to startups, I have a lot to share with you. My aim is to help people, by sharing everything I've learned in life. Here's my full story. Connect with me on FacebookInstagram, Twitter or WhatsApp (+001-408-489-4785). This blog is read today, by more than 300K people world over! Here's my guide on how you can start a blog like this. :)

Add Comment

Click here to post a comment

Who is Mani Karthik?

I started this while in Los Angeles, USA. Having lived in USA, India and UAE, I share everything that I’ve learnt in life. From spirituality to personal finance and everything in between. Come join my pursuit to happiness! Here’s more about me and how I make money blogging.

Make Money Blogging

Add me on Facebook.

Follow on Twitter.

Add on LinkedIn.

Follow on Instagram.

ManiKarthik_Blogger

Do You Want to Make Money from Blogging?

Get step by step information on how to become a successful blogger like me. I share everything I've learned in the last 10 years - All FREE!

Here's what you will get..

- How to make money online via blog.
- Complete steps to start your blog.

- Ways to make money from your blog.
- Ways to make your blog look professional.
- Ways to make your blog popular.
- And some secret tips! (Exclusive)

Enter your email address and get free tips in your inbox. Stop anytime if you don't like it.

 

Awesome! Please check your email for information.