Small private banks and small finance banks are offering higher interest rates on FDs on savings accounts than some private banks. So that customers can be attracted towards them.
After the Reserve Bank of India’s (RBI) hike in the repo rate from 4 per cent to 6.50 per cent in the last financial year, many banks increased the interest rates on savings accounts. Small private banks and small finance banks offer up to 8 percent interest on savings accounts, which is higher than major private banks.
These banks are giving more interest
- DCB Bank is offering up to 8 percent interest on savings account. This bank is providing the best interest rates among private banks. Customers can keep a minimum balance of Rs 2,500 to Rs 5,000 in the savings account of this bank.
- Ujjivan Small Finance Bank is paying up to 7.5% interest on savings account. This bank offers the best interest rates among small finance banks.
- Federal Bank is paying up to 7.15 percent interest on savings account. The minimum limit to maintain balance is Rs.5,000.
- DBS Bank offers up to 7 percent interest on savings accounts. This bank offers the best interest rates among foreign banks. Average quarterly balance requirement is Rs.10,000 to Rs.25,000.
- AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering up to 7% interest on savings account. The average monthly balance requirement is Rs.2,000 to Rs.5,000, Rs.2,500 to Rs.10,000 and Rs.2,000 respectively.
- IDFC First Bank and RBL Bank are offering up to 7% interest on savings account. The average monthly balance requirement is Rs.10,000 and Rs.2,500 to Rs.5,000 respectively.
Small private banks and small finance banks are offering higher interest rates on savings accounts than major private and public sector banks to attract new retail customers. You should choose a bank with a long track record, good service standards, wide branch network and ATM services across cities. Higher interest on savings accounts would be a bonus.
