How to Link IPPB Account with Post Office Savings Account?

The post offices have served the citizens of India for many years to help them make savings. With the launch of India Post Payments Bank (IPPB) on 1 September, India Post looks to expand the reach of digital banking the remotest of areas in the country with its existing network of over 1.5 lakh branches. IPPB is set to have 650 branches and 3250 access points all over the nation apart from its extensive reach through smartphones and postmen (Gramin Dak Sevaks).

If you already hold a savings account with the post office, you can definitely take advantage of the additional features that you will get from linking the IPPB account with it. On linkage, you can avail more services rather than restricting yourself to the fund limits of a payments bank account and the digital limitations of a post office account. In a way, the features of both the accounts will compliment each other.

Note that POSA, as well as all the accounts of IPPB, pay an interest rate of 4 percent on deposits which is paid to the holders quarterly.

How to link the post office savings account (POSA) to IPPB account?

To be able to link your POSA to an IPPB account one can choose from any of the different types of IPPB accounts.

However, the digital account can only be opened by those who are over 18 years of age. The regular account can be opened and independently operated by a minor who is 10 years or older.

You have the option to link the accounts while you are applying for the IPPB account. Note that to link your digital IPPB, you need to complete the KYC requirements within 12 months of opening one.

Benefits of linking the POSA and IPPB accounts

• The major benefit is the facility to automatically move any excess fund from IPPB to the POSA when it exceeds the limit of Rs 1 lakh. Which means that if your day-end balance exceeds Rs 1 lakh, instead of rejecting the transaction, the surplus will be moved to POSA.
• There is no minimum balance requirement in an IPPB account, allowing you to transfer the whole balance to POSA at any time, which does not have a maximum balance limit. On the other hand, POSA requires a minimum balance of Rs 50 (without cheque facility) to be maintained.
• There is no minimum investment requirement in an IPPB, unlike POSA where one needs to deposit Rs 20 to open the account.
• You can make withdrawals and deposits to the POSA using the regular/digital account.
• You can take advantage of IPPB's doorstep banking services where the postman visits your house for a minimal fee.
• You can utilise a banking service by smartphones (IPPB app), SMS service and missed calls.
• Bill payments and mobile recharges can be made from the comfort of your home.
• The QR card will let you shop without the need to carry cash.
• You can opt for third-party services like insurance, loans, and investments.
• You can opt for various post office investment options provided by India Post and make the regular payments through it.