India Post serves the people of India to help them make savings and plays an important role in India’s socio-economic development. The services offered by post offices have reached every corner of the country from rural areas to urban areas. In this post, I am going to tell you about IPPB and POSA Linkage and how to link POSA to IPPB Account?
Table of Contents
Post Office Savings Account
POSA is a deposit scheme provided by India Post throughout India. It holds a significant place in fostering savings as it reaches out to the remotest part of India. Therefore, it is a very helpful scheme for those who reside in rural parts of India.
It can be opened by cash only with a minimum initial deposit of Rs.500. It offers a fixed interest rate on the balance amount. You can transfer your account from one post office to another with no maturity requirements.
Click here for more information about Post Office Savings Account.
IPPB and POSA Linkage
If you already hold a Post Office Savings Account then you can link the IPPB savings account with POSA. On IPPB and POSA linkage, any balance above Rs.1 lakh at the end of the day is transferred to the linked POSA.
How to link POSA to IPPB Account?
1. To link POSA to IPPB account you must have an active individual Post Office Saving Account. You can choose from any of the different Saving Accounts in India Post Payments Bank.
2. You can link your POSA at the time of opening India Post Payments Bank account. The POSA can also be linked post opening of the India Post Payment Bank account through Doorstep service or at the IPPB Access Point.
3. You need to produce your POSA passbook to GDS/Postman in case of Doorstep service or counter staff at Access Point.
4. You will get an SMS notification to your registered mobile number post successful linkage of the POSA account.
Note: POSA linkage facility is not available with a digital savings account. However, post-conversion from digital saving account to a savings account, you can link POSA to IPPB account.
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Benefits of linking the POSA and IPPB accounts
1. Automatic transfer of excess funds from IPPB to the Post Office Saving Account when it exceeds the limit of Rs.1 lakh.
2. If your day-end balance exceeds the limit, instead of rejecting the transaction the system will move the excess funds to POSA.
3. You can transfer the whole balance at a time from the India Post Payment Bank account to POSA as it does not have a maximum balance limit.
4. Using the IPPB Mobile App, you can manage funds with sweep-in and sweep-out facility.
5. You can deposit/withdraw cash via the IPPB savings account.
Sweep-in and Sweep-out Facility
Sweep-in and Sweep-out Facility enables you to manage funds conveniently. Any balance above Rs.1 lakh will be swept out into the linked POSA account. At times, the saving account exceeds the maximum limit and stays idle without interest benefit. This facility facilitates the transfer of funds automatically or manually from your IPPB savings account to the POSA and helps you to earn higher interest.
Key Features
1. There is no limit on the minimum amount to be withdrawn.
2. No extra charges for availing this facility.
3. You can avail this service through IPPB Mobile App or assisted channels like Doorstep service and Access Point.
4. To check the balances, single sign-on for both the accounts on the IPPB Mobile App.
5. The sweep services are available between 8:00 am to 8:00 pm or till the availability of funds in the sweep in account on all working days.
6. The services will not be available on the second and fourth Saturdays, Sundays, and RTGS holidays.
Final Thoughts
I hope now you can link POSA to IPPB Account easily. The automatic transfer of excess funds from the India Post Payments Bank account to the POSA when it exceeds the limit of Rs.1 lakh helps you to earn higher interest. Moreover, there is no minimum balance requirement in the India Post Payments Bank account that allows you to transfer the whole balance to POSA at any time.
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