India Post Payments Bank slashes savings account interest rate by 25 bps

New Delhi: With effect from February 1, 2022, India Post Payment Bank (IPPB) has lowered interest rates on savings accounts by 25 basis points.

The Department of Post, which is part of the Ministry of Communications of the Government of India, owns India Post Payments Bank, which is a division of India Post.

According to the current statement on the IPPB website, starting February 1, 2022, the rate for balances up to Rs 1 lakh will be 2.25 percent; for balances beyond Rs 1 lakh but up to Rs 2 lakh, the rate will be 2.50 percent.

With effect from July 1, 2021, the interest rate for accounts up to Rs 1 lakh was 2.50 percent, while the interest rate for balances beyond Rs 1 lakh but less than Rs 2 lakh was 2.75 percent.

Customers will receive quarterly interest calculated on their daily EOD balance.

"This is to inform those concerned that India Post Payments Bank has updated its interest rate on all customer variations of Savings Accounts as per the Asset Liability Committee approved policy effective from 1st February 2022, as per the below table," according to the notification.