Airtel Payments Bank has just announced that it is increasing the percentage of interest offered to the customers on their deposits. However, the higher interest rate would be applicable on deposits over Rs 1 lakh only. For the unaware, Airtel Payments Bank is Bharti Airtel’s e-finance arm that paid customers at an interest rate of 2.5% per annum when their deposits were under or up to Rs 1 lakh.
But now, the company has announced that users who keep more than Rs 1 lakh on their Airtel Payments Bank savings account will receive 6% interest per annum on their deposit.
6% Interest Applicable on Amount Between Rs 1 Lakh to Rs 2 Lakh
The 6% interest per annum will be paid on the amount that’s above Rs 1 lakh. The company will pay the same 2.5% interest per annum on the amount below or up to Rs 1 lakh. The changes were made on May 1, 2021.
It was not long ago when Airtel Payments Bank became the first online payments bank in India to increase the deposit limit to Rs 2 lakh. Now, the company is offering an even greater interest on the amount that the users keep in their bank account.
Airtel payments Bank has over 55 million engaged users at this point in time. The company has around 5,00,000 banking points across the country, both in urban and rural parts, to ease online transactions.
The company also offers a rewards savings account known as ‘Rewards123’. Users can opt for the Rewards123 account by paying a nominal sum of Rs 299 per year. However, it might not feel like the best deal to the users since their yearly benefits or cashbacks are capped at Rs 960. Even for earning that complete yearly benefit, users will have to make a ton of online transactions. So the Rewards123 account is only recommendable for users who make several online transactions in a week.
Airtel Payments Bank users also get the option to increase the security on their savings account by enabling ‘Airtel Safe Pay’ that asks users twice to authenticate the money transaction from their account.
Airtel Payments Bank has increased the interest rate on the deposits when IDFC First Bank cuts rates from 6% to 4-5%.