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Saturday, December 10, 2022

Savings account deposits: These banks offer up to 7% interest

Small finance banks and some private sector banks offer interest rates of 6.5-7 percent on savings account balances.

Many individuals park funds in their savings accounts to ensure that they have liquid funds to take care of any emergencies or simply because they are too preoccupied to direct the money into investments. This means losing out on the prospect of higher returns, given that most large banks offer interest rates of just up to 3.55 percent on savings account balance. However, some small private banks and small finance banks offer sweeter deals on savings account rates. As per data from Bankbazaar.com, such banks offer maximum interest of 6.55-7 percent on savings deposits.

AU Small Finance Bank | This small finance bank offers savings interest of up to 7 percent. At the lower end of the range, the interest rate is 3.5 percent. The minimum balance required to be maintained ranges from Rs 2,000 to Rs 5,000.

Equitas Small Finance Bank | This bank, too, offers an interest rate ranging from 3.5-7 percent. The minimum balance requirements are between Rs 2,500 and Rs 10,000.

Ujjivan Small Finance Bank | This bank’s interest rates on savings bank balances – 3.5-7 percent – are similar to those offered AU and Equitas small finance banks, but it gives you the flexibility of not maintaining any balance in your savings account.

Suryoday Small Finance Bank | The interest rates range from 4 percent to 6.25 percent. The minimum balance that you need to maintain in the account is Rs 2,000.

DCB Bank | This private sector lender offers interest rates in the region of 2.25- 7 percent on savings deposits. The minimum balance requirements range from Rs 2,500-5,000.

Bandhan Bank | This bank’s savings account interest rates range from 3-6.5 percent. The minimum balance requirement is Rs 5,000.

IDFC First Bank | This private sector bank’s minimum savings account rate is comparatively higher at 4 percent. The maximum rate is capped at 6.25 percent. The minimum balance requirement is much higher at Rs 10,000.

RBL Bank | Savings account rates start at 4.25 percent, while the upper limit is 6.25 percent. You will be required to maintain minimum balances of between Rs 2,500 and Rs 5,000.

YES Bank | Among the first banks in the industry to raise the stakes on savings account interest, it offers 4-6.25 percent on savings deposits. However, the minimum balance requirements are much higher at Rs 10,000-25,000.

Most large public sector banks such as Union Bank of India, Canara Bank, Bank of Baroda, Punjab & Sind Bank and Bank of India pay interest of between 2.75 percent and 3.55 percent on savings deposits. However, their minimum balance requirements are much lower, starting at as little as Rs 250-500, while the maximum requirement across these banks is just Rs 1,000.

For the compilation of data, all public and private sector banks listed on the Bombay Stock Exchange (BSE) were taken into account. In each category, the top five banks that offer savings accounts with the highest interest rates are listed. Banks for which data is not available on their websites have not been considered. Minimum balance requirements mentioned are for regular savings accounts, excluding Basic Savings Bank Deposits (BSBD) accounts. Banks in their respective categories have been listed in the descending order, considering the upper end of their interest rate range. The rates may vary depending on the category of savings accounts and balance maintained, subject to applicable terms and conditions.

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