Airtel vs IPPB vs NSDL vs Fino: Interest Rates On Savings Account Compared

If you are new to personal finance management and need to save money to invest in an interest-bearing instrument, putting your money in a savings account is a smart option. The deposits in a savings account are covered by the DICGC, allowing the account holder to keep his or her money secure. Apart from capital safety, a savings account pays a stable interest rate, and when compared to India's leading public and private sector banks, a payment bank pays a higher rate of interest on savings accounts. According to RBI "The payments bank will be registered as a public limited company under the Companies Act, 2013, and licensed under Section 22 of the Banking Regulation Act, 1949, with specific licensing conditions restricting its activities mainly to acceptance of demand deposits and provision of payments and remittance services."

As per the guidelines set by RBI for licensing of payments banks, current deposits, and savings bank deposits from individuals, small enterprises, and other entities except non-resident Indians are permissible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) of India's deposit insurance plan also covers the deposit made with a payments bank. As a consequence, investors seeking to establish a savings account to earn higher interest rates can evaluate in this article the interest rates on savings accounts offered by Airtel Payments Bank, India Post Payments Bank (IPPB), Fino Payments Bank, and NSDL Payments Bank.

Airtel Payments Bank

Airtel Payments Bank announced a 6-percent-per-annum interest rate on savings account deposits of over Rs. 1 lakh starting May 3, 2021. As a result of this initiative, Airtel Payments Bank became the first payments bank to adopt the Reserve Bank of India's (RBI) higher day-end savings ceiling of Rs 2 lakh.

In an official statement Airtel Payments Bank last year while launching had said "Customers can now open an Airtel Payments Bank account within few minutes with a video call from the Airtel Thanks app. The bank offers a digital savings account - Rewards123, which gives more value to customers when they transact digitally using the account. Furthermore, customers who have an Airtel number linked to their savings account can also enable Airtel Safe Pay - India's safest mode for making digital payments." The Airtel Payments Bank Savings Account Interest Rates as of May 1, 2021 are listed below.

Balance slabs	Rate of interest
Rs 1-2 lakhs	6% p.a.
Upto Rs 1 lakh	2.5% p.a.

India Post Payments Bank (IPPB)

Regular Savings Account, Digital Savings Account, and Basic Savings Account are the three types of savings accounts offered by India Post Payments Bank, a division of India Post that is administered by the Department of Post, a department under the Ministry of Communications of the Government of India.

Although each of these accounts has its own set of advantages, the IPPB gives a similar rate of interest on all of them. IPPB offers a 2.25 percent annual interest rate on digital savings accounts with a maximum yearly cumulative deposit of Rs. 2 lakhs.

IPPB provides an interest rate of 2.25 percent per annum on deposit balances up to INR 1 lakh, and 2.50 percent per annum on deposit balances over INR 1 lakh and up to INR 2 lakh on regular and basic savings accounts. These interest rates are payable on a quarterly basis and are effective as of 1st of Feb 2022.

Fino Payments Bank

Fino Payments Bank has a variety of savings accounts with different features. Shubh Savings Account, Pratham Savings Account, Saral Savings Account, Suvidha Account, Bhavishya Savings Account, Jan Savings Account, and Aarambh Savings Account are among the accounts available. By choosing the sweep account facility on the Shubh Savings Account, the payments bank is giving an interest rate of up to 6.25 percent per annum.

Suryoday Small Finance Bank, a partner bank, offers a sweep account for amounts exceeding two lakh rupees. On Pratham Savings Account, Saral Savings Account, Fino Payments Bank is offering interest up to 6.25% p.a. on the daily end-of-day balances with a sweep account facility.

The payments bank is giving a 2.75 percent p.a. interest rate on Suvidha and Bhavishya Savings Accounts with effect from May 1, 2021, on savings bank account balances up to Rs 2 lakhs. Fino Payments Bank is offering 2.75 percent p.a. on balances up to INR 2 lakhs, as well as up to 6.25 percent p.a. if you choose the Sweep account option. The payments bank is now giving an excellent interest rate of up to 6.25 percent on Aarambh Savings Accounts with a sweep facility.

NSDL Payments Bank

The payments bank National Securities Depository Limited (NSDL) provides a variety of savings accounts. Advantage Savings Account, Classic Savings Account, Premium Savings Account, and BSBD Account are all available through the NSDL payments bank. Customers who keep a balance in their savings account will get a quarterly interest rate of up to 5% annually. Interest on balances more than Rs 2 lacs maintained in a linked account with a partner bank would be determined according to the partner bank's guidelines. The interest rates on NSDL payment bank savings accounts are mentioned below.

Balance slabs	Rate of interest
Per annum interest on balance up to Rs 1 Lac	2.50%
Per annum interest on balance above Rs 1 Lac	5%
Source: nsdlbank.com