5 Small Finance Bank Interest Rates That Are Better Than Commercial Banks

What Are Small Finance Banks?

The Reserve Bank of India (RBI) established Small Finance Banks under the direction of the Indian government to promote financial inclusion by providing basic banking services to underserved and unserved segments such as small businesses, small - scale farmers, micro and small industries, and unorganised entities. All basic banking activities, including as lending and accepting deposits, are available to these banks, just as they are to other commercial banks.

Commercial banks are not the same as small finance banks. Commercial banks have no limit on the amount of capital they can acquire, however Small Finance Banks must have a minimum capital of a hundred crores.

Following Are 5 Small Finance Banks That Offers High Rate of Interest on Saving Accounts

1. Ujjivan Small Finance Bank

Below mentioned are the Interest Rates for Domestic (w.f.f 6th March, 2021.) as well as Non-Resident accounts.

Amount	Interest Rate (p.a.)
Up to 1 Lkah	4.00%
>1 lakh to 25 lakh	7.00%
>25 lakh to 10 lakh	6.00%
>10 crore	6.75%

2. Jana Small Finance Bank

Rates are effective from 11/10/2021 (subject to change from time to time) 

Savings Account Balance	"Interest Rate
Per Annum "
> 0 and upto 1 lakh	3.00%
More than 1 lakh and Upto 10 Lakhs	6.00%
More than 10 Lakhs and Upto 50 Crores	6.50%
More than Rs. 50 Crores	6.50%

Note:-

1. Interest will be calculated on a daily basis for each commodity.
2. On the first of July, the first of October, the first of January, and the first of April of each year, interest is paid / credited to savings accounts on a quarterly basis.

3. Equitas Small Finance Bank

Savings Account Interest Rate w.e.f. 15th November, 2021

Daily Closing Balance	Interest rates
Up to Rs 1 Lakh	3.50%
Above Rs 1 Lakh and upto Rs 5 lakh	6.00%
Above Rs 5 lakh and upto Rs 50 lakh	7.00%
Above Rs 50 Lakh	5.50%

4. AU Small Finance Bank

Applicable Interest Rates on Savings Bank Deposits w.e.f. 5th October, 2021 

"
Savings Account Incremental Amount slab**"	ate of Interest Applicable (per annum)
Balances less than INR 1 Lac	3.50%
Balances from INR 1 Lac to less than INR 10 Lacs	5.00%
Balances from INR 10 Lacs to less than INR 25 Lacs	6.00%
Balances from INR 25 Lacs to less than INR 1 Crore	7.00%
Balances from INR 1 Crore to less than INR 10 Crores	6.00%

Note:-

1. Please note that interest on savings accounts will be calculated daily and paid at monthly intervals (i.e. at the end of each month).
2. The interest rates listed apply to additional balances that are existent and correspond to the amount slab mentioned.
3. Please contact your Branch or Relationship Manager for Savings Account Interest Rates on incremental amounts of INR 10 Crores and higher.
4. Interest rates on Savings Accounts are subject to change at any time without notice.

5. Fincare Small Finance Bank

The in interest will be applicable w.e.f 1 July 2021 

Savings Account Slab	Interest Rate (% P.A.)
Upto and including 1 Lakh	4.50%
Above 1 Lkah and including 5 lakh	6.00%
Above 5 lakh and including 5 Lakh	7.00%
Above 1 Crore and including 2 Crore	6.00%
Above 2 Crore and including 5 Crore	5.75%
Above 5 Crore and including 15 Crore	4.50%
Above 15 Crore and including 20 Crore	4.00%
Above 20 Crore and including 30 Crore	3.25%
Above 30 Crore and including 50 Crore	3.00%
Above 50 Crore	3.00%

Note:- Interest will be applicable for the incremental balances that are present corresponding to amount slab mentioned