Pvt banks step up efforts to increase savings account transactions

Offer freebies on cash deposits, rewards for using debit cards

Now, get gifts for depositing money in your savings account. HDFC Bank, the second largest private sector lender in the country, is offering "assured gifts" to its customers for putting money in savings account and using debit cards for making purchases.

"Deposit more, gain more. Credit regularly into your HDFC Bank savings account and make the most of our offering," Surinder Chawla, head of retail liabilities product group at the bank, wrote in a mail to customers.

HDFC Bank is not the only private bank that has stepped up efforts to increase transactions through savings accounts. ICICI Bank, the largest private sector lender in the country, has introduced 'MySavings Rewards Program' that allows its customers to earn reward points on savings account transactions.

Depositors will be awarded points for shopping online, paying bills through internet banking, setting up instructions for auto debit from savings account. These points can be redeemed while buying branded apparels, booking hotels and purchasing air tickets.

"Every time you bank with us, you are getting more," Abonty Banerjee, general manager at ICICI Bank, wrote in a mail to clients.

A few private banks have also been dialing their clients requesting them to make fresh deposits despite the depositors having more than the minimum balance in their savings account.

YES Bank, which currently offers the highest rate of interest (7%) on savings deposits of Rs 100,000 or more, is also offering free movie tickets and cash backs to its depositors for using debit cards in making purchases.

"The idea is to encourage customers to use their savings account. The bank is ready to bear the cost of freebies since it will increase the transaction volume and lead to higher savings buildup. Hence, these offers more than justify the cost," Chitra Pandeya, senior president and country head for savings liabilities, cards and direct banking at YES Bank, said.