Mumbai, April 26: Singapore-based DBS Bank is offering an interest rate of 7 per cent on savings accounts opened through an app called digibank.

For opening such an account, customers need not visit the bank's branch. An individual can download the app or it can be done at an extensive network of outlets run by DBS's partners.

At present, the lender has tied up with over 500 Cafe Coffee Day outlets across India. While there is no paperwork involved, the customer authentication is done purely using an individual's Aadhaar card and a biometrics-enabled ID.

The bank, which has so far focussed mainly on the affluent segment, expects the new initiative to push up the number of savings bank accounts to five million in the next five years.

The interest rate of 7 per cent is among the highest in the industry. RBL Bank now offers an interest rate of 7.1 per cent on savings accounts for balances above Rs 10 lakh and up to Rs 5 crore.

However, in DBS Bank, accountholders can earn a 7 per cent interest on the very first rupee.

Moreover, there are no minimum balance requirements and customers enjoy unlimited free cash withdrawals at its ATMs.

Piyush Gupta, chief executive officer of DBS Bank, said the lender expected to build a liability (deposit) book of Rs 50,000 crore through India's first mobile-only bank.