There are various advantages to having a savings account, including liquidity, interest earnings, fund safety, and additional profits due to the auto sweep option between a savings account and a fixed deposit, among others. According to statistics provided by BankBazaar, small finance institutions are offering greater interest rates in the face of dropping interest rates.
To attract new retail customers, small finance banks are giving greater interest rates on savings accounts than private and public sector banks. Choose a bank with a long history of outstanding service, a large branch network, and ATM facilities in multiple locations; a higher interest rate on savings accounts would be a plus.
Check out these 5 banks offering up to 7 percent interest rates:
- Ujjivan Small Finance Bank: On savings accounts, Ujjivan Small Finance Bank is giving interest rates as high as 7%. This bank offers the best interest rates among small financing banks.
- AU Small Finance Bank: On savings accounts, AU Small Finance Bank is offering interest rates as high as 7%. Monthly balance requirements range from Rs 2,000 to Rs 5,000.
- Equitas Small Finance Bank: On savings accounts, Equitas Small Finance Bank is offering interest rates as high as 7%. Monthly balance requirements range from Rs 2,500 to Rs 5,000.
- DCB Bank: Savings accounts at DCB Bank can earn up to 6.75 percent interest. This bank has the best interest rates among private banks. The required monthly amount is from Rs 2,500 to Rs 5,000.
- Suryoday Small Finance Bank: Suryoday Small Finance Bank is offering savings accounts with interest rates as high as 6.25 percent. The average required monthly amount is Rs 2,000.