Recently all banks cut interest rates on saving bank accounts which make people to look for an alternative source of income besides saving bank interest.
Earlier, most banks were paying 4% interest rates on saving bank accounts but now they are paying 3.5%. So, customers are now looking for a source which provide handsome returns with no risk.
Here are alternatives for those customers.
- Open account in Smaller Banks as these banks haven’t changed their interest rates to retain customers and attract new customers.
- Use Digital Payment Banks such as Airtel, Paytm, India post. There are some other institutions also which have got license but still not started functioning. Now they can setup their banking business and attract new customers. You can earn interest rates on deposits from 4.5% to 7.25% on these Digital Payment Banks.
So, if you are also one of those who want safest income option, use above type of Banks to earn higher rates as compared to major banks such as SBI, Canara etc.