Jio Payments Bank’s ‘Savings Pro’ Offers 6.5% Interest; See How Jio Could Shake Up Indian Banking

Jio Payments Bank’s new ‘Savings Pro’ product promises up to 6.5% returns by sweeping idle balances into overnight mutual funds. While customers enjoy better yields, the real story lies in how this innovation could disrupt India’s savings account model and strengthen Jio’s position in financial services.

The Interest Rate Advantage

Currently, Jio Payments Bank’s standard savings deposits earn just 2.5%, in line with most other banks’ savings accounts. By contrast, overnight funds typically yield around the RBI’s repo rate (5.5%). Over the past year, overnight funds have returned slightly over 6%, according to recent news reports.

‘Savings Pro’ lets Jio Payments Bank customers set a minimum threshold in their account. Any surplus above this is auto invested into low risk overnight mutual funds, with the option to instantly redeem up to 90% of invested value. Larger redemptions settle in 1–2 working days.

That means customers using ‘Savings Pro’ could earn 2.5–3% more than traditional savings accounts, with the added benefit of daily compounding, which isn’t always the case in bank deposits.

Automated Fund Moves Aim to Boost Returns on Idle Savings

A major player is introducing a mechanism that puts idle funds in savings accounts to work at higher rates.

Automating overnight fund investments removes the need for manual decisions, making investment more effortless.

However, some questions remain. Clarity is needed on balance requirements, given regulatory limits for payments banks, and accessibility across platforms will be key, since savings accounts are often linked to multiple channels.

Similar to Sweep-in Facilities

Sweep-in facilities offered by banks, for instance, automatically move surplus balances above a threshold into fixed deposits.

This isn’t entirely new, ICICI Bank launched a ‘Mutual Fund Sweep Account’ in 2002 for current account holders. The trend now is toward automated investments, making it easier for customers to grow their savings effortlessly.

Why Jio Benefits?

1. Stronger Customer Value Proposition

By offering yields up to 6.5%, Jio sets itself apart from banks paying 2–3%. This is likely to attract depositors away from incumbents, boosting Jio Payments Bank’s customer base.

2. Higher Engagement Within JioFinance

The product is integrated into the JioFinance app, which could increase customer engagement, providing a foundation for cross selling loans, insurance, and investments.

3. Strategic Positioning for JFSL

For Jio Financial Services, this isn’t just about deposits. It signals a broader move into wealth and asset management, positioning JFSL as a hybrid banking + investments player in India’s fast evolving financial services sector.

Why This Could Reshape Banking?

• Raises the Bar on Idle Funds: Customers will question why they should leave money in low interest accounts when seamless alternatives exist.
• Pushes Digital Adoption: By making investment like returns available via a bank app, Jio can accelerate digital financial inclusion.

Read More: Jio Financial Services Launches Tax Planning Tool WithTaxBuddy Tie-Up.

Conclusion

‘Savings Pro’ is more than a higher-interest product it’s a strategic disruption. By turning surplus deposits into productive assets, Jio Payments Bank is redefining what a savings account can deliver. For customers, it’s higher returns with zero complexity. For Jio, it’s a pathway to stronger deposits. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.