Attractive options

Mumbai, June 18: Commercial banks are going all out to lure customers ? from offering interest on current account deposits, albeit indirectly, to dishing out several value-added benefits with their product bouquet to ramp up the depositor base.

Although banks continue to chase savings bank deposits, the action is in current accounts. Banks are taking initiatives to top up current accounts ? where interest rates are not paid ? with attractive offerings for the business community to carry out their daily transactions.

Recently, Development Credit Bank (DCB), an emerging private sector bank, launched M-Power, which allows the customer to access a host of free services and facilities of a current account without having to maintain the average quarterly balance.

DCB said M-Power accountholders would not be required to maintain a minimum or average balance, as is the case with other banks.

By paying an annual fee, the customer can enjoy a host of free facilities and services, including a sweep in/out facility for balance above Rs 50,000, free demand draft up to Rs 50 lakh per month, international debit card, any branch banking and free electronic funds transfer facilities among others.

Under the sweep in/out facility, which essentially enables transfer of funds from current account to a fixed-deposit or vice versa, balances above the cut-off limit of Rs 50,000 can be moved to a term deposit, said P.N. Vasudevan, head consumer banking group, DCB.

Once the surplus fund is transferred to the fixed-deposit, it earns an interest. However, this can be only done for a period of 15 days.

?We want to offer a bouquet of products to the consumer. By offering such facilities, we are filling this bouquet with a product where the customer does not have to maintain a minimum balance,? he told The Telegraph.

HDFC Bank also allows its current accountholders to transfer funds from their fixed-deposits in times of need.