According to a notice by IPBB issued on November 3, 2021, for a basic savings account, cash withdrawals, which are free up to 4 transactions per month, will be charged at 0.50% of the value subject to minimum Rs 25 per transaction, after the free limit is crossed. (Charges are exclusive of GST/ CESS which will be levied at the applicable rates.) Whereas, cash deposits are free of cost.
For savings (other than Basic SA) and current accounts, cash withdrawals are free up to Rs 25,000 per month. “Post free limit, 0.50% of the value subject to minimum Rs. 25 per transaction,” stated the IPPB notice.
Cash deposits into these accounts are free up to Rs 10,000 per month. “Post free limit, 0.50% of the value subject to minimum Rs. 25 per transaction.”
Savings accounts with IPPB
IPPB has three kinds of accounts: Regular, Digital and Basic savings account. These accounts come with interest rates:
- Balance up to Rs 1 lakh: 2.50%
- Balance above Rs 1 lakh and up to Rs 2 lakh: 2.75%
- One can open these savings accounts with zero balance.
Post office savings bank account
Like a bank savings account, one can also open a savings account with a post office and interest is paid on the balance in the savings account by the post office. Account can be opened with cash only with minimum of Rs 20 and no maximum limit. For a non-cheque facility account, minimum balance to be maintained is of Rs 50. To avail the cheque facility, minimum balance of Rs 500 is to be maintained. The interest rate on these savings accounts in 4% per annum.
The Department of Posts recently announced that it has established various charges on ATM cards, which will take effect on October 1, 2021, via a circular dated September 15, 2021. The Department has also set a limit on the number of financial and non-financial transactions that can be made at ATMs in a month. Click
here to read more.