5 banks are offering up to 7% interest on savings accounts; time to switch your bank account?

New Delhi: Most Indians usually put their money untouched in their bank accounts in hope that their savings remain safe. However, with lower interest rates, saving your funds in your bank account isn’t a popular idea, especially with the inflation rates touching highs. 

However, there are several banks that are offering impressive returns on their savings in the bank accounts. Most of these are small finance banks. According to the data compiled by BankBazaar, 5 banks small finance banks are offering up to a 7% interest rate on savings accounts. 

Bank customers can easily switch to small finance banks to earn a better interest rate on their savings. However, customers may have to pay more for services such as ATMs in case of the non-availability of ATMs of the bank in which your account is. 

Therefore, investors shouldn’t just go for the higher interest rates, but also take other factors such as net banking services, availability of ATMs, and branch facilities, among others, into consideration. 

AU Small Finance Bank 

Customers can get up to a 7% interest rate on their AU Small Finance Bank savings account. However, customers are required to maintain a monthly balance of around Rs 2,000 to Rs 5,000 to receive returns at a higher interest rate.

Ujjivan Small Finance Bank 

Ujjivan Small Finance Bank customers can receive a higher interest rate of up to 6.75 per cent on their savings accounts. Customers get an interest rate of 6.75 per cent on investments worth more than Rs 10 crore. 

Equitas Small Finance Bank 

Equitas Small Finance Bank saving account customers can get a 7 per cent interest rate on depositing above Rs 5 lakhs and up to Rs 50 lakhs. 

DCB Bank 

DCB Bank also offers a higher interest rate of up to 6.25 per cent to its saving account customers. The interest rate is, in fact, the highest among private banks. Bank customers are required to maintain a minimum balance of Rs 2,500 to Rs 5,000. Also Read: “Ban it”: US House speaker supports halting Russian oil imports

Suryoday Small Finance Bank 

Suryoday Small Finance Bank saving account customers can also avail of up to 6.25 per cent interest on savings accounts. They are required to maintain an average monthly balance requirement of is Rs 2,000. Also Read: Russia-Ukraine War: Reddit blocks all links to Russian state media, bans ads