DBS bank reduced interest rates on First 1 lakh to 4%

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DBS bank reduced interest rates on first 1 lakh from current 5% to 4% from 1st Feb so now for for 2 lakhs in dbs you will get an avg interest rate of (4+7)/2 = 5.5% It is still a bit better than kotak which also gives 4% on first 1 lakh & 6% on balance above that 1 lakh. Now it seems like IDFC ( 7% interest on entire balance if it is above 1 lakh by even a rupee) & DCB bank(effective 8.3% interest incl cashback on 1 lakh but not more than that as cashback is capped) are the best options for keeping money in savings account.

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from best to average bank, no physical banks means less trust

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rockylucifer wrote:

from best to average bank, no physical banks means less trust

Now they are allowing users (Savings account) only from the cities with physical branches

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rockylucifer wrote:

from best to average bank, no physical banks means less trust

*

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I think dcb is best now, so I will open account in dcb elite account.

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rockylucifer wrote:

from best to average bank, no physical banks means less trust

Well it is physical to those living in cities with their branches.Anyway this is still a good option as a secondary bank acc with a debit card having international online transactions enabled.

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getready wrote:

Now they are allowing users (Savings account) only from the cities with physical branches

yes, but how many branches, i am in Bangalore, only 1 branch that too far from my location, instead i will choose bank with nearby branches

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Idfc is better

<= 1 Lac – 6.00%
> 1 Lac <= 1 Cr – 7.00%

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arunrush680 wrote:

Idfc is better

<= 1 Lac – 6.00%
> 1 Lac <= 1 Cr – 7.00%

Best part is that you supposedly get 7% on entire amount if balance is even 100001 & not like 6% on 100000 & 7% on Rs.1.

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guest_999 wrote:

Best part is that you supposedly get 7% on entire amount if balance is even 100001 & not like 6% on 100000 & 7% on Rs.1.

Where is it mentioned?

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arunrush680 wrote:

Where is it mentioned?

https://www.idfcfirstbank.com/banking-products/...

IDFC FIRST Bank’s Savings Account is our testament to putting our customers first. We offer one of the industry’s best savings account interest rates at 7% p.a. for Rs 1 lac+ balance, starting at an assured interest rate of 6% p.a.
What’s more, you earn this interest on your entire balance, starting from the first rupee. That means you earn every single day. We pay out this interest every 3 months.

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So, it means DBS got enough CASA smile

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Shahskm wrote:

So, it means DBS got enough CASA smile

Doesn’t this mean IDFC & DCB still have low CASA to offer higher interest rates. smile

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arunrush680 wrote:

This was Uday kotak’s reply when I asked him about decreased int rate for <1 lakh. https://mobile.twitter.com/udaykotak/status/113...

He is correct though & I understand.Major banks can’t afford to give higher interest rate because of their large size compared to smaller banks like IDFC & DCB. Kotak service is fine but their credit cards are not worth taking & personally seen a friend getting rejected for a credit card just because he was not holding any job currently but the avg bank balance he kept in kotak was enough to get him a decent ltf credit card if he had maintained the same balance in hdfc or icici.

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guest_999 wrote:

Best part is that you supposedly get 7% on entire amount if balance is even 100001 & not like 6% on 100000 & 7% on Rs.1.

It mean in DBS bank we won’t get 7% on above 1 lakh balance kept?

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iamshashikant wrote:

It mean in DBS bank we won’t get 7% on above 1 lakh balance kept?

DBS,kotak,every other bank by default calculate interest on incremental amounts.e.g.If your balance is 1.5Lakh in dbs/kotak..then you will get one interest rate on 1 lakh & another interest rate on 50000 so for DBS bank you will get 4% interest on 1 lakh & 7% interest rate on 50000(amount over 1 lakh & less than 2 lakh gets 7% interest in dbs).

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guest_999 wrote:

DBS,kotak,every other bank by default calculate interest on incremental amounts.e.g.If your balance is 1.5Lakh in dbs/kotak..then you will get one interest rate on 1 lakh & another interest rate on 50000 so for DBS bank you will get 4% interest on 1 lakh & 7% interest rate on 50000(amount over 1 lakh & less than 2 lakh gets 7% interest in dbs).

So more than RS.1 lakh in DBS will get 7% interest?

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iamshashikant wrote:

So more than RS.1 lakh in DBS will get 7% interest?

Yes but only the amount that is above 1 lakh & below 2 lakh so out of 2 lakh,1 lakh gets 4% interest rate & next 1 lakh gets 7% interest rate so for total 2 lakh you get (4+7)/2 = 5.5% interest rate but in IDFC you will get 7% on entire 2 lakh amount.

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