Small private banks and small finance banks provide more interest rates on savings account FDs than some private banks. So that customers can be attracted towards them. After the Reserve Bank of India (RBI) increased the repo rate from 4 percent to 6.50 percent in the last financial year, many banks have raised interest rates on savings accounts. Small private banks and small finance banks pay up to 8 percent interest on savings accounts, higher than that of large private banks.
DCB bank pays up to 8 percent interest on savings accounts. This bank offers the best interest rates among private banks. Customers can keep a minimum balance from Rs 2,500 to Rs 5,000 in this bank’s savings account.
Ujjivan Small Finance Bank pays up to 7.5% interest on savings account. This bank offers the best interest rates in small finance banks.
Federal Bank savings account pays up to 7.15%. The minimum limit for maintaining balance is Rs. 5,000.
DBS bank pays up to 7 percent interest on savings accounts. This bank offers the best interest rates among foreign banks. The average quarterly balance required is Rs 10,000 to Rs 25,000.
AU Small Finance Bank, Equitas Small Finance Bank and Sunrise Small Finance Banks pay up to 7% interest on savings accounts. The average monthly remaining 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 pay interest up to 7% on savings account. The average monthly remaining requirement is Rs 10,000 and Rs 2,500 to 5,000 respectively.
Small private banks and small finance banks are offering higher interest rates on savings accounts than large private and public sector banks to attract new retail customers. You should choose a bank with long track records, good service standards, broad branch networks and ATM services in cities. More interest bonuses will be available on the savings account.
