High interests driving depositors to co-op banks even amid bankruptcy

Customer service and long-term association spanning generations are also other reasons for the popularity

Even as co-operative banks go belly up at alarming frequency, depositors’ trust in these banks remains seemingly rock solid. 

The reason for this could be manifold, but one major reason is the high interest rates these cooperative banks offer. This is especially true for senior citizens, who flock with their life savings to reputed urban co-operative banks.

“Retired and old people, who are dependent on interest income, park their money primarily because of the higher rates offered by these co-operative banks,” said Abizer Diwanji, head of financial services at EY. 

Not only senior citizens, others also keep their money here