Axis Bank introduced a paid savings account where there are fewer fees and no minimum balance requirement in an effort to move towards subscription-based accounts. Customers would pay Rs 150 per month or the reduced Rs 1,650 per year for what the third largest private sector lender has dubbed the "Infinity Savings Account." Most banks currently insist on a minimum amount for savings accounts and charge account users a fee if the balance falls below the minimum.
They also charge for extending services like SMS alerts, printing passbooks, etc. A few players, like Fino Payments Bank, do charge an annual account maintenance fee of the kind that Axis Bank is introducing with the new account. Axis Bank said it is targeting the digitally savvy customers - who are frequent adopters of subscription-based offerings - with the new account variant. "By incorporating the principles of subscription-based models, we aim to provide our customers with a transformative banking experience, aligning with the evolving preferences and expectations of today's consumers," its head of retail liabilities, Ravi Narayanan, said.
The new offering doesn't require any minimum balance, will not charge for domestic transactional fees, and also offers free debit cards which can be used at ATMs as many times as a customer would need. There are no charges on checkbook usage or transactions/withdrawals above limits as well, the bank said in a statement.