Moving towards subscription-based accounts, Axis Bank on Tuesday launched a paid savings account where the customer will not be charged for many services and will not be required to maintain a minimum balance. Customers will be charged Rs 150 per month or the discounted Rs 1,650 per year for what has been christened as 'Infinity Savings Account' by the third largest private sector lender.
At present, a majority of the banks insist on a minimum balance for having a savings account, and charge holders a fee whenever the balance drops below the threshold.
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 which 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 cheque book usage or transactions/withdrawals above limits as well, the bank said in a statement.