Similar to Fixed Deposits (FDs), savings accounts are used to create a kind of comfortable pool of funds that one can draw upon at will. Typically, it is used not only to save your hard earned money, but also to generate some level of interest on the deposited amount. In the daily scenario, savings accounts are used by people for their daily expenses and accessibility is the biggest difference between this and the traditional FD account. Part of the charm of opening and maintaining a savings account. The liquidity associated with such an account acts like a piggy bank as well as a form of investment that earns interest over time. Whether you’re using ATMs, UPI transactions, or other forms of online payment, the process is pretty smooth.
In the wake of falling interest rates, many smaller, private banks are offering their customers a higher interest rate in an attempt to capture this customer base. This makes these lenders a more advantageous option than the big better known banks like HDFC, State Bank of India, etc. One of those banks that offers good interest rates is DCB Bank.
DCB Bank offers its clients an interest rate of up to 6.75% on their savings deposits. This is by far one of the best interest rates when considering private lenders. It should also be noted that the range of interest rates is quite diverse for this bank as it starts with an interest rate of 2.75 percent per annum. At the upper limit, in terms of deposits, it offers interest rates for deposits worth Rs 10 crore and more according to the bank’s website.
This essentially translates into more versatility for you as a customer in terms of the savings you could potentially accumulate over time. Interest rates on deposits deposited into the bank account are calculated based on the amount of the progressing balance in each interest rate bracket.
For example, if you were to deposit an amount of Rs 20 lakh into the DCB Bank savings account, you would get an interest rate of 2.75% per annum for the tranche of Rs 1 lakh. The next Rs 4 lakhs would get you an interest rate of 4 percent per annum. After that, the next Rs 5 lakh will earn an interest rate of 4.50 percent per annum. Finally, the last Rs 10 Lakh would get an interest rate of 5 percent per annum. So, with each additional deposit into the account, you will get better and better returns.
DCB bank savings account: interest rate pa WEF 25 August 2021
On balances up to 1 lakh in the account – 2.75 percent per year
On balances greater than 1 lakh to less than 2 lakh on the account – 4.00% per annum
On balances from 2 lakh to less than 5 lakh in the account – 4.00 percent per annum
On account balances of 5 lakh to less than 10 lakh – 4.50% per annum
On balances of 10 lakh to less than 25 lakh in the account – 5.00 percent per annum
On account balances of 25 lakh to less than 50 lakh – 6.00% per annum
On account balances of 50 lakh less than 1 crore – 6.50 percent per annum
On balances from 1 crore to less than 10 crore in the account – 6.75 percent per annum
On balances of 10 crore and more – 6.50 percent per annum
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