Bandhan Bank and Infrastructure Development Finance Company (IDFC) First Bank plans to change their interest rates. The alterations will be on the interest rates of savings accounts, which will be increased up to 7%. Interest rates offered by banks on savings account and fixed accounts are determined by changes in RBI monetary policy such as repo rate, base rate, economic conditions, and liquidity positions of the banks, and level of credit demand prevailing in the country.
In the December-monetary policy, the benchmark of interest rates was kept unchanged, which was about 4% as fixed by the Reserve Bank of India (RBI). The banks are planning not to reduce the interest rates any further. This offers relief to savings account holders and fixed deposit account holders. There are some small and new private banks operating in the country that offers higher interest rates on savings accounts as compared to established private banks and public sector banks. New private banks like Bandhan Bank and IDFC First Bank are offering customers interest rates of 7.15 percent and 7 percent respectively.
Nowadays customer manages multiple savings accounts. There are also facilities for customers to use their savings account to park the emergency corpus. It is important to think seriously about how much interest the banks pay to deposit their customer funds into a savings account.
Currently, the interest rate provided by Bandhan Bank is 3% to 7.15% per annum, with MAB (MAB is the average of all the closing-day balances in a given month) balance type while the rate offered by Infrastructure Development Finance Company (IDFC) First Bank is 3.5% to 7% per annum with balance type as Average Monthly Balance (AMB). The interest rates are more competitive with small finance banks. At IDFC First Bank and Bandhan Bank, the minimum balance requirement is Rs 10,000 and Rs 5,000 respectively.
The minimum balance requirement at IDFC First Bank and Bandhan Bank is Rs.10,000 and Rs.5,000 respectively. Bandhan Bank Ltd, the Indian banking and financial services company, has its headquarters in Kolkata, West Bengal.
Bandhan bank is spread across different States and Union Territories; they started their operation with 501 branches, 50 ATMs, and 2,022 Banking Units on day one. Currently, Bandhan Bank has 4,701 banking outlets pan-India serving more than 2.08 crore customers. Infrastructure Development Finance Company (IDFC) First Bank, has its headquarters in Mumbai.
