No bank currently pays a rate of interest on savings bank deposits of more than 7%, and many banks pay less than 7% even on fixed deposits. NiyoX has unveiled a new type of zero-balance savings bank account with a whopping 7% interest rate.
NiyoX is a joint venture between Niyo and Equitas Small Finance Bank. Niyo, India's leading fintech company, has teamed up with Equitas Small Finance to launch a mobile banking option called NiyoX. You can use this digital account in two ways. One can also use it as your online savings account. Second, you can use it as your Wealth Management Account.
NiyoX is seeking to help thousands of youngsters to manage their savings and wealth in partnership with Equitas. The wealth management suite is supported by Niyo Money and is a single-stop shop that offers zero commissions, supports users in tracking investments, and rounds up costs.
Most Indian banks impose penalties and fines if a customer fails to maintain a minimum balance, which varies from Rs 100 to Rs 5000 depending on the bank. This bank is providing zero account maintenance fees, which can be extremely beneficial during the on-going pandemic.
You can invest your money directly in mutual funds for free, and you won't be charged if your online savings account doesn't have a minimum balance. On deposits made through this savings account, you will earn 7% interest.
If you aren't using your card or have misplaced it, you can 'Lock' it temporarily and then 'Unlock' it when you're ready to use it again.
This new age bank is protected by the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring that your money is safe with a Rs 5 lakh insurance cover.
How can you maximize your earnings?
Assume your bank pays you a staggering 7% interest rate on any amount over 1 lakh in your savings account, and for less than 1 lakh, you'll get a 3.5% interest rate.
As a result, a 3.5% interest rate is given on the entire balance for a balance of Rs 1 lakh, and a 7% interest rate is applied to the remaining balance.
If your account has Rs 1,35,000, you will attract an interest of 3.5% for Rs 1 lakh, and the remaining Rs 35,000 will attract a 7% interest rate.
On a daily basis, interest is calculated on the EoD balance: (EoD Balance) * (Interest rate of 3.5% or 7%) * (Days in quarter/365).
It's really easy to sign up for a NiyoX account. All you have to do is download the NiyoX app from the iOS Appstore or the Google Playstore. After you've downloaded the app, you can immediately begin the onboarding process.