Interest rates on saving account deposits offered by banks vary by FD tenure and from time to time. While banks offer deposit rates based upon market liquidity and RBI policy, the rates are not the same across all banks. Rates tend to vary and hence it is advisable to check all deposit rates.
Private sector lender Axis Bank has cut interest rate on savings accounts by 50 basis points to 3.50 per cent per annum for balance of up to Rs. 50 lakh. This is happened within days of SBI slashing interest rate on savings bank account – Axis Bank – has followed suit, cutting it to 3.5 percent on deposits of up to Rs 50 lakh. The rate revision by SBI Bank triggered rate cut by other banks and more banks are expected to revise their rates lower.
India’s largest lender, State Bank of India (SBI), on July 31 introduced a new two-tier savings account interest rate system, reducing interest rates for most of its depositors. On balances below Rs. 1 crore, SBI lowered the interest rate to 3.5 per cent from 4 per cent. On balances above Rs. 1 crore, the bank will continue to offer the rate of 4 per cent. “The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on savings bank deposits,” SBI said in a statement. Real interest rate refers to interest rate an investor receives after adjusting for inflation. About 90 per cent of SBI’s savings accounts have balances under Rs. 1 crore.
Another large lender, Bank of Baroda recently cut interest rate for savings accounts to 3.5 per cent on deposits of up to Rs. 50 lakh.
Currently, banks in the country are on a spree to slash savings interest rates with large banks like PNB, HDFC, and SBI bringing down interest rates on savings account by 50 basis points to 3.5%. As many as seven banks have announced a rate cut on saving bank interest rate till now mainly due to the fall in the rate of inflation and surplus money. Hence, it is logical as well as crucial to look for better alternatives.
digibank by DBS, on the contrary, is offering lucrative interest rates on deposits with them—7 % which is exactly double of 3.5%, currently offered by leading banks. While the other banks have succumbed owing to decline in the rate of inflation, digibank by DBS has managed to sustain its deposit rates. This places the bank in a unique position and also for reasons like it’s the only banking institution providing free unlimited ATM withdrawals, no minimum balance requirement, integrated UPI and a 90 sec account opening.
Over the years, DBS has been relentlessly expanding its payments partnerships and channels by leveraging digital innovation. The bank has also been recognized for its leadership in the region, having been conferred “Asia’s Best Bank” by The Banker and Euromoney, and “Asian Bank of the Year” by IFR Asia. The bank has also been named “Safest Bank in Asia” by Global Finance for eight consecutive years from 2009 to 2016.
digibank truly deserves to be the pit stop for customers as it brings together an entire suite of ground-breaking technologies and dime saving features like zero account balance, free unlimited ATM withdrawals and UPI etc. Account-opening can be done easily and effortlessly at an extensive network of outlets run by DBS’ partners (over 500 cafes across India). Defying conventional banking norms, digibank is a completely paperless, signature less and branchless bank. For customer authentication, the bank asks for the Aadhaar card, a biometrics-enabled ID which eliminates the chance of any malicious activity. So, digibank is not only taking care of their customer’s money by providing them highest interest rate but also giving them easy and secured way of banking.