DBS Bank India, the Indian arm of Singapore's DBS Bank, on Wednesday, updated its savings account interest rates, offering enhanced returns to customers for balances between Rs 5 lakh and Rs 50 lakh.
The rates for other balance ranges have also been revised by the bank and are in effect from May 9 onwards. The new structure offers one of the most competitive returns in the banking industry, the lender said in a press release.
According to the revised rates, balances between Rs 5 and Rs 50 lakh in savings accounts will now give returns at an interest rate of 5.5% per annum. This structure provides customers with a compelling blend of liquidity, safety and growth on their idle funds, DBS Bank India said.
With the revised rates, balances up to Rs 2 lakh will earn 2.75% per annum, the press release states. Moreover, balances above Rs 2 lakh and up to Rs 5 lakh will receive a 3.25% interest rate. For balances above Rs 50 lakh, the interest rate has been fixed at 4% per annum.
The move by DBS Bank India comes days after several banks announced a reduction in their savings account interest rates. This followed after the Reserve Bank of India lowered its repo rate to 6% last month.
The repo rate is the interest rate at which the RBI lends funds to commercial banks in India. When this rate is lowered, banks reduce their offerings on select products such as fixed deposits and savings accounts. This happens mainly because borrowing becomes cheaper and banks don't have to rely on customers for funds.
“For non-resident account holders, balances above Rs 2 lakh will
earn 3.00% per annum, while balances up to Rs 2 lakh will continue to earn 2.75% per annum,” the lender said.
To make the process more convenient, the lender is offering the option of opening the savings account digitally through the DBS digibank app.
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