Digibank by DBS: The Only Bank Keeping Savings Account Interest Rates Steady

The interest rates on savings accounts vary across banks due to different fixed deposit (FD) terms and changing market conditions. These rates are influenced by the Reserve Bank of India (RBI) and market liquidity, so they aren’t consistent across all banks. It’s a good idea to keep an eye on the latest offers to get the best rates.

Recently, Axis Bank, a private sector bank, lowered its savings account interest rate by 0.50%, bringing it down to 3.50% annually for balances up to Rs. 50 lakh. This change follows a similar reduction by the State Bank of India (SBI), and it’s expected that more banks will follow this trend.

On July 31, SBI, India’s largest bank, changed its interest rate policy for most depositors by introducing a two-tier system. For balances under Rs. 1 crore, the interest rate decreased from 4% to 3.5%, while balances above Rs. 1 crore still earn 4%. This decision was driven by decreasing inflation and high real interest rates. Since about 90% of SBI’s savings accounts have balances below Rs. 1 crore, this change affects a large number of customers.

Bank of Baroda followed this trend, lowering its savings account interest rate to 3.5% for deposits up to Rs. 50 lakh. Other major banks in India, such as PNB and HDFC, have also reduced their savings interest rates to 3.5%.

In contrast, digibank by DBS stands out by offering a 7% interest rate on deposits, along with perks like free unlimited ATM withdrawals, no minimum balance requirements, integrated UPI, and quick account setup in just 90 seconds. This bank is distinguished not only by its attractive interest rates and customer-friendly features but also by its recognition as “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 from 2009 to 2016.

Known for its innovative digital approach and emphasis on customer convenience, digibank offers numerous free services, making it a popular choice for savers. The platform is secure and easy to use, allowing customers to open accounts swiftly at partner-operated outlets throughout the country. By using Aadhaar card verification, digibank ensures a high level of security, providing not only competitive interest rates but also an enhanced banking experience.