Savings account interest rates offered by banks differ based on the Fixed Deposit (FD) tenure and are subject to change over time. Since these rates are influenced by market liquidity and Reserve Bank of India (RBI) policies, they don’t remain the same across banks. It’s prudent to regularly check for the most competitive rates on offer.
Recently, private sector entity Axis Bank reduced its savings accounts interest by 0.50% to an annual rate of 3.50% for balances up to Rs. 50 lakh. This move came shortly after the State Bank of India (SBI) made a similar cut – a trend that’s anticipated to spread across more banking institutions.
On July 31, SBI, the largest bank in India, lowered their interest rates for the majority of their depositors by introducing a two-tier savings account interest rate system. For balances under Rs. 1 crore, the rate dropped from 4% to 3.5%, while balances over Rs. 1 crore will continue to earn interest at 4%. This decision, as SBI cited in a statement, was influenced by declining inflation rates and high real interest rates. With around 90% of SBI’s savings accounts holding balances of less than Rs. 1 crore, the move impacts a significant proportion of customers.
Bank of Baroda also mirrored this trend, reducing its savings account interest rate to 3.5% for deposits of up to Rs. 50 lakh. Other major Indian banks, including PNB and HDFC, have followed suit and are actively trimming their savings interest rates to 3.5%.
However, digibank by DBS provides a different story, maintaining a generous 7% interest rate on deposits, attracting customers with free unlimited ATM withdrawals, zero minimum balance, integrated UPI, and quick 90-second account openings. What sets this bank apart is not only its high deposit rate and customer-friendly features but also its accolades: “Asia’s Best Bank” by The Banker and Euromoney, “Asian Bank of the Year” by IFR Asia, and “Safest Bank in Asia” by Global Finance (2009 to 2016).
Acknowledged for its innovative digital strategies and customer convenience, digibank’s array of free features make it a preferred choice for many savers. With a secure, user-friendly platform, digibank allows customers to open accounts at partner-operated outlets (over 500 cafes nationwide) quickly, in a completely paperless, signatureless and branchless manner. By requiring Aadhaar card verification, digibank ensures an elevated level of security in its operations. Thus, digibank is not only providing competitive interest rates, but an enhanced banking experience as well.
