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Question: Unity SFB Saving account Interest rates = 6%. How?

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Raavan

Raavan

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I was attracted to Unity SFB interest rates from this thread - https://www.technofino.in/community/threads/savings-account-interest-rates.19403/

Recently RBL bank devalued its interest rate to below 4%. But Unity SFB is offering 6% interest rate below 1L deposit.

Where it's own competitor SFBs are giving below 4% interest, HOW IS UNITY BANK ABLE TO GIVE SO HIGH INTEREST?

That's not all, Unity SFB is profitable, showing good growth %
1718129731995.png
Even below image depicts the same
1718129780505.png

How on earth that this bank is offering highest interest rate, showing growth in numbers and profitable. Along with NPAs under control??

I opened my account in Unity recently, by seeing and attracted to the interest rate, but now I am scared to deposit even 1L to the account.. Itna interest dene k chakkar me farziwada na ho raha ho backend me 🤔
 

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Pradumya said:
Pradumya said:
Tagging for opinions

@#aniket
Click to expand...

I opened my account in Unity recently, by seeing and attracted to the interest rate, but now I am scared to deposit even 1L to the account.. Itna interest dene k chakkar me farziwada na ho raha ho backend me 🤔
Click to expand...
Don't worry, Deposit Insurance and Credit Guarantee Corporation (DICGC) insures all deposits, principal and interest upto a maximum amount of ₹5 lacs.
 
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Pradumya said:
Yes
But the question is how is it earning so much when there is no proper product also?
Comparison with Capital SFB, has net profit only 112 CR and net income is less than Unity SFB, offers 3.5% interest rate.
Whereas Unity offers 6% , comparatively newer bank, still clocks more income and profit than Capital SFB.
Click to expand...
IDFC FIRST ne bhi diya thha 7%🤣

Abb IDFC ki halat fatichar ho gayi hai. Baat baat pe block kar deta hai

Iska bhi wahi hoga
 
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Pradumya said:
Yes
But the question is how is it earning so much when there is no proper product also?
Comparison with Capital SFB, has net profit only 112 CR and net income is less than Unity SFB, offers 3.5% interest rate.
Whereas Unity offers 6% , comparatively newer bank, still clocks more income and profit than Capital SFB.
Click to expand...
It is because Centrum and BharaPe as major shareholders / investors..
Remember Bharatpe got a very good presence in micro finace segment..

Unity had full backing of these guys and hence must be doing well in Loans section...

Our Brand | Brand Identity | Vision - Unity Bank

theunitybank.com theunitybank.com

1718131570591.png


1718131617475.png
 
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SSV said:
It is because Centrum and BharaPe as major shareholders / investors..
Remember Bharatpe got a very good presence in micro finace segment..

Unity had full backing of these guys and hence must be doing well in Loans section...

Our Brand | Brand Identity | Vision - Unity Bank

theunitybank.com theunitybank.com

View attachment 56938


View attachment 56939
Click to expand...
Centrum Capital is itself a loss making company, last quarter was only the profitable quarter for them.
Their own interest liability is eating away 40-50% income which is not sustainable.


Even BharatPe financials are loss machine. Khud ka dhandha sambhal nahi Raha ye bank chalayenge 😂
 
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Pradumya said:
Centrum Capital is itself a loss making company, last quarter was only the profitable quarter for them.
Their own interest liability is eating away 40-50% income which is not sustainable.


Even BharatPe financials are loss machine. Khud ka dhandha sambhal nahi Raha ye bank chalayenge 😂
Click to expand...
Not everything is disclosed fully and you can't directly compare the businesses of these two with this new entity Unity SFB...

In businesses and politics, it is always not about what was spoken about.. it is more about what is not spoken about...

You need to connect a lot of dots.. Cant be discussed in the public forums like these.. Not commenting anymore on this topic .....
 
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Like every other, many neo banks have started playing with words in their advertisements.

When they say "get upto 7% on SB", it is followed by a micro star n say conditions apply. They do not pay 7% on all SB accounts. But, only on certain qualifying accounts. What are these ? You need to read multiple sheets, multiple times n co-relate them to arrive at exactly what they meant - in reality n in practice. Probably, it could be a minimum balance of 5L or 10L in SB account. Or, even 50L.

So, do not go by what appears apparently. But, READ N VERIFY.

I am keeping my liquid surplus funds in Kotak bank's SB account - WITH ActivMONEY feature. It is nothing but a Sweep in/out SB-FD account.

Same type of SB account in other banks - called by different names - offers the same features.

Basically, what they are doing is this. Beyond a set floor limit of say 20K, any excess balance is treated by their system - not as SB balance - but as multiple small FDs - of say 1000 each - which attract higher rate of FD. You have the withdrawal convenience of a SB in such FDs.

About 30 years back, HSBC launched it - thanks to their computerised accounting system - the best in those days. I spent a week studying it then in their branch at Visakhapatnam.

Now, almost every bank - big n small - offers it.

Read about it all at your own bank. FD like interests, no lock-in period, on-the-fly withdrawals....
 
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Less users - bank offers high percentage to get more users

As more users join - the interest rates goes down

Even more users join - Hard to sustain and interest rate matches every other bank

It's a tactic to get more users and hope they stay even after the interest rates are changed.

Same was followed by IDFC.

Same by RBL when launched.

Same was even followed by Axis to get more CC users.
 
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Pradumya said:
Dicgc or RBI never pays
They call SBI to save the bank and puts limit on withdrawals
Savoury memories of Yes Bank
Click to expand...

You need to read this.

This is how business works, do you remember how Jio entered into the market when there were several telecoms and disrupted through it's pricing.

Likewise, you can term Interest Rate is USP of that bank.

Every new comers try to give something unique so as to grab the customers and sustain in the market. Otherwise, why will customer choose it, without getting offered sth unique. They are supposed to bring something extra so that customers will get attracted for shifting otherwise why anyone will do?

See IDFC, it offers almost every thing free of cost today also. Earlier it used to offer high interest rates also, now it got decreased when IDFC got substantial amount of customers.

Compare Interest rate of PSUs with Private Bank especially which is not in top rankings. You will get to know, it's general think, people blindly believe if their money is with PSUs doesn't matter how good their services are as they think it's goverment who is backing, but not in case of pvt banks. People have such beliefs today also.

This is how it works brother.

I have attached one offical PDF also as you questioned on DICGC.
 

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RAMESH BABU N said:
Basically, what they are doing is this. Beyond a set floor limit of say 20K, any excess balance is treated by their system - not as SB balance - but as multiple small FDs - of say 1000 each - which attract higher rate of FD. You have the withdrawal convenience of a SB in such FDs.
Click to expand...
Something new I learnt.
I thought the bank takes consent before sweep in/out facility
#aniket said:
You need to read this.

This is how business works, do you remember how Jio entered into the market when there were several telecoms and disrupted through it's pricing.

Likewise, you can term Interest Rate is USP of that bank.

Every new comers try to give something unique so as to grab the customers and sustain in the market. Otherwise, why will customer choose it, without getting offered sth unique. They are supposed to bring something extra so that customers will get attracted for shifting otherwise why anyone will do?

See IDFC, it offers almost every thing free of cost today also. Earlier it used to offer high interest rates also, now it got decreased when IDFC got substantial amount of customers.

Compare Interest rate of PSUs with Private Bank especially which is not in top rankings. You will get to know, it's general think, people blindly believe if their money is with PSUs doesn't matter how good their services are as they think it's goverment who is backing, but not in case of pvt banks. People have such beliefs today also.

This is how it works brother.

I have attached one offical PDF also as you questioned on DICGC.
Click to expand...
Toh means k eventually this will also reduce interest rate like every other bank
But jab tak de raha hai loot lo 😀
 
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Pradumya said:
Something new I learnt.
I thought the bank takes consent before sweep in/out facility
Click to expand...
They do take consent bro, either it's activated by account holder or bank on behalf of account holder on placing such request, Kotak has auto sweep facility, called as ActivMoney for almost all savings account unlike other bank where there's only a dedicated account only for such facility like in case of IDFC.
Pradumya said:
Toh means k eventually this will also reduce interest rate like every other bank
But jab tak de raha hai loot lo 😀
Click to expand...
Haan jee 🤭
 
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