The India Post Payment Bank was officially launched by Prime Minister Narendra Modi on the 1st of September, 2018, ushering in a new revolution for the country’s banking sector. A payments bank targets higher penetration of financial services for under-served and unbanked urban, semi-urban and rural areas.
Here’s looking at a brief comparison between savings bank and payments bank accounts-
- Interest Rates- There are some payments banks which offer up to 7.5% as interest which is good for customers. Savings accounts in banks give you anywhere between 3.5-4% although FDs can give you between 6-7%.
- Minimum deposit amount- The catch here is that payments banks allow maximum deposits of Rs. 1 lakh in an account. However, there are no limits on the minimum amount to be deposited whenever you open a savings bank account or payments bank account. However, minimum balance restrictions are there for savings bank accounts in most cases as opposed to payments bank accounts.
- Financial Services- When you open a savings account at your bank branch, you can seek a loan or credit card, invest in FDs, recurring deposits or other instruments and also get other financial services. However, savings accounts at payments bank will not help you get access to these services.
As a result, in case you require comprehensive banking solutions, a savings account in a bank is always the best solution. However, a payments bank is a great way to integrate more people into the formal banking sector. Those who need only basic banking services will definitely find payments banks to be a good option.