When it comes to your personal finances, the first step is to open a savings account for both short-term and long-term needs. Your deposits are insured up to Rs. 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC), so it's a safe bet to put your money in a savings account. You'll also get enticing perks like cashback or reward points on ATM or debit card transactions, competitive interest rates for maintaining a monthly average balance with a sweep in, passbook, net banking, or cheque book, and more.
When compared to fixed deposit interest rates, savings account interest rates are low, but some banks can offer higher savings account interest rates than fixed deposit interest rates. Despite the fact that leading banks like HDFC, State Bank of India (SBI), Axis Bank, ICICI Bank, and others promise savings account interest rates ranging from 2.75 percent to 3.50 percent, certain small finance banks may offer savings account interest rates as high as 7%, which is something you shouldn't overlook. As a result, we've compiled a list of the top 5 small finance banks that are now offering up to 7% interest on savings accounts, as well as DICGC deposit safety.
Ujjivan Small Finance Bank:
On domestic deposits with balances ranging from Rs1 lakh to Rs 25 lakhs, Ujjivan Small Finance Bank is currently offering the highest interest rate of 7%. From March 6, 2021, the bank will offer the following savings account interest rates.
Utkarsh Small Finance Bank:
Utkarsh Small Finance Bank offers a 7% interest rate on incremental balances of more than Rs 25 lakh up to Rs 10 crores, as well as free domestic ATM transactions and NEFT/RTGS transactions. The following interest rates are in effect as of October 1, 2021.
Fincare Small Finance Bank:
This small finance bank is also offering savings account balances of Rs 1 lakh to Rs 50 crore or more an interest rate of up to 7%. Fincare Small Finance Bank will offer the following savings account rates beginning July 1, 2021.
AU Small Finance Bank:
Domestic / NRE / NRO Savings Account balances of Rs 25 Lacs to Rs 1 Crore will earn a 7% interest rate from AU Small Finance Bank. As of October 5, 2021, the following are the current applicable interest rates on savings bank deposits.
Equitas Small Finance Bank:
Equitas Small Finance Bank offers a 7% interest rate on daily closing balances of over Rs 1 lakh and up to Rs 1 crore, with no maintenance charges and a minimum average monthly balance of Rs 10,000. As of August 16, 2021, the following savings account interest rates are in effect.
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