India Post Payments Bank reduces savings account interest rates by 25 bps w.e.f June 1

India Post Payments Bank (IPPB) has decreased interest rates on savings accounts by 25 basis points. The lower interest rates are applicable from June 1, 2022.

According to the India Post Payments Bank notice, “This is to inform all the concerned that India Post Payments Bank has revised its interest rate on all the customer variants of Savings Accounts as per the Asset Liability Committee approved policy effective from 01st June 2022 as per below table.”

According to the latest notification on the IPPB website, for balances up to Rs 1 lakh, the interest rate will be 2 percent (down from 2.25 percent a year) from June 1, 2022; for balances beyond Rs 1 lakh and up to Rs 2 lakh, on an incremental basis the rate will be 2.25 percent (down from 2.5 percent).

Source: IPPB website

According to IPPB, quarterly interest will be paid to the customers which will be computed on the daily EOD balance.

India Post Payments Bank is a division of India Post that is owned by the Department of Post, which is part of the Government of India's Ministry of Communications.

Earlier, the bank had reduced the savings account interest rate by 25 basis points effective from February 1, 2022.