5 Savings Accounts With Minimum 4% Interest Rate On Daily Balance

Savings accounts are preferred by people who are new to banking and investing because they are a great way to invest in short or long-term savings. Numerous public and private sector banks including the post office in India provide people with a variety of savings accounts to suit their needs with different interest rates.

Depending on the amount of savings, all banks including the post office set interest rates on their savings accounts that typically range from 2.50% p.a. to 7.25% p.a. One should note, for a savings account, one has to maintain a minimum average balance.

1. Unity Small Finance Bank

Unity Small Finance Bank is a small finance bank that offers the highest interest rates on savings accounts. The interest rates offered by bank range from 6% to 7% for different amounts. For deposits up to Rs 1 lakh and over Rs 1 lakh, the bank offers interest on savings accounts at a rate of 6% p.a. and 7% p.a., respectively. According to the bank, the interest rates are effective from January 22, 2023.

2. RBL Bank

RBL Bank is a leading private sector lender that offers 4.25% interest rate on daily balances up to Rs. 1 lakh. The interest rate on savings deposits offered by the bank is between 4.25% p.a. to 7% p.a. on daily balance. The savings account interest rates are effective from March 01, 2023, according to the bank's official website.

Interest rates on Savings Deposit (including NRE/NRO Savings)

Daily balance	Rate of Interest (p.a.)
Upto Rs. 1 lakh	4.25%
Above Rs. 1 lakh upto Rs. 10 lakh*	5.50%
Above Rs. 10 lakh upto Rs. 25 lakh*	6.00%
Above Rs. 25 lakh and upto Rs. 7.5 Crore*	7.00%
Above Rs. 7.5 Crore upto Rs. 25 Crore*	7.00%
Above Rs. 25 Crore upto Rs. 50 Crore*	6.25%
Above Rs. 50 Crore upto Rs. 100 Crore*	5.25%
Above Rs. 100 Crore upto Rs. 200 Crore*	6.00%
Above Rs. 200 Crore upto Rs. 400 Crore*	4.00%
Above Rs. 400 Crore*	5.25%

3. Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is 2nd small finance bank that offers the highest interest rates on savings deposits. The bank offers 4.25% interest on the daily balance up to Rs 1 lakh. The interest rate offered by the bank is between 4.25% p.a. to 7.25% p.a. Bank revised the interest rate on the savings account on December 01, 2022.

Interest Rate on Domestic Savings

Balance in	Rate of Interest (%p.a)
Balance Upto 1 Lakh	4.25% p.a.
Incremental balance above 1 Lakh upto 25 Lakhs	6.50% p.a.
Incremental Balance above 25 Lakhs up to 10 crore	7.25% p.a.
Incremental Balance above 10 Crore	7.50% p.a.

4. Fincare Small Finance Bank

Fincare Small Finance Bank (SFB) is 3rd Small Finance Bank in the list that offers high-interest rates on savings deposits. The bank is giving an interest rate of 4.11% on savings account balances up to Rs. 1 lakh. As per the bank's official website, the new rates are effective as of January 01, 2023. The bank is one of the few lenders to offer returns on savings accounts of more than 7%, p.a. with interest rates on deposits ranging from 4.11% p.a. to 7.11% p.a.

Savings Account Slab

Savings Account Lab	Interest Rate (%p.a)
uptp and including 1 Lakh	4.11%
Above 1 lakh and Including 5 lakhs	6.11%
Above 5 lakh and including 10 lakh	7.11%
Above 10 laks and including 15 lakhs	7.11%
Above 15 lakhs and including 25 lakhs	7.11%
Above 25 lakh and including 50 lakjs	7.00%
Above 50 lakhs and including 1 Cr	7.00%
Above 1 Cr and including 2 Cr	7.00%
Above 2 Cr and including 5 Cr	7.00%
Above 5 Cr and including 10 Cr	7.00%
Above 10 Cr and including 15 Cr	7.00%
Above 15 Cr and including 20 Cr	7.00%
Above 20 Cr and including 25 Cr	4.00%
Above 25 Cr and including 30 Cr	3.25%
Above 30 Cr and including 50 Cr	3.00%
Above 50 Cr	3.00%

5. Post Office Savings Account

Post Office Savings Account is a central government-backed savings account. Post Office offers various small savings or schemes catering to different needs of individuals. The post office currently offers 4% p.a. interest rate on the savings account. To open a savings account in the post office, the minimum amount required is Rs 500. Interest rates on these savings schemes are announced once every quarter by the government.