Indian banks are jostling for the low-cost savings account deposits by wooing customers through various lucrative offers. While smaller banks have raised interest rates on savings deposits, banking giant SBI has waived Minimum balance for Savings account for all its customers.
In latest, SBI has announced a waiver on the requirement of minimum balance criteria for savings bank account for all the account holders. The public sector banking behemoth will not levy any charges for breaching minimum balance requirement of Rs.1000, which attracted penalty until now in a normal account.
While smaller banks like Yes Bank, Kotak Mahindra Bank and IndusInd Bank offer a high interest rate in the range of 5-7% on savings bank deposits; bigger banks like HDFC, ICICI Bank, Axis Bank and all of the PSBs have refrained from raising interest rates on savings deposit, on account of their higher share of low-cost deposits to their total deposits.
Over here, it must be noted that foreign banks like Citibank have exorbitantly high minimum balance requirement of Rs.25000 for savings bank accounts in metro cities.
In India, the private sector banks charge around Rs.10000, failing which the account holders have to fork out a fine of Rs.250 per month in metro centres. The new SBI waiver is likely to bring in new customers for the bank, with lesser hassles to observe for the customers.