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Best Savings Account: Banks Giving More Returns Than FD With DICGC Coverage

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A savings account is a form of financial institution-provided interest-bearing instrument that allows an individual to deposit, secure, or withdraw money as needed, making a savings deposit more liquid in nature for accumulating fortune to face unforeseeable circumstances. A savings account is typically opened to keep your money safe while also earning you modest interest. Savings account interest rates are decided by day-end balances held in the account, and interest is paid/credited to the account on a quarterly basis. The availability of DICGC insurance coverage on savings account deposits increases the level of security.

 

Savings account interest rates are typically lower than bank fixed deposit interest rates, but what if you could earn more returns on a savings account than on a bank fixed deposit? Yes, you read that correctly; we've selected seven small finance banks that will not only provide you with DICGC coverage on your deposits but will also pay you up to 7% interest on your savings account, which is significantly higher than fixed deposit interest rates offered by leading banks like SBI, HDFC, ICICI, and Axis Bank. When establishing a savings account, keep in mind that banks do not provide any additional interest rates for senior citizens.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank

Classic Savings Account is a standard savings account offered by Ujjivan Small Finance Bank. Any resident individual who is 18 years of age or older can establish this account, but he or she must maintain a minimum average balance of Rs 5,000 to keep the account operational. Higher savings with interest rates up to 7%, issuance of a RuPay Classic Debit Card and a RuPay Platinum Debit Card, Ujjivan SFB ATMs provide unlimited free transactions, waiver of debit card yearly maintenance fees, 50% waiver of processing cost for a personal loan, loan against FD, and OD against FD are just a few of the account's distinctive features. The bank is giving the below-mentioned interest rates on savings accounts as of March 6, 2021.

AmountInterest Rate (p.a.)
Up to 1 lakh4.00%
> 1 Lakh to 25 Lakhs7.00%
> 25 lakhs to 10 Crores6.00%
> 10 crores6.75%
Source: Bank Website 
Jana Small Finance Bank
 

Jana Small Finance Bank

Customers can choose from a variety of savings accounts, including Premium Savings Accounts, Silver Premium Accounts, Savings Plus, Video KYC Accounts, Salary Accounts, and DIGIGEN. Each of these accounts has its own set of advantages, which can be found on the bank's website. Jana Small Finance Bank is offering the following savings account interest rates as of March 4, 2022.

Savings Account BalanceInterest Rate Per AnnumIllustration
Upto 1 lakh4.50%4.50% will be paid on balances up to Rs. 1 Lakh
More than 1 lakh and Upto 50 Lakhs7.00%7.00% will be paid on incremental balances above Rs. 1 Lac & up to Rs. 50 Lacs
More than 50 Lakhs and Upto 50 Crores6.50%6.50% will be paid on incremental balances above Rs. 50 Lacs & up to Rs. 50 Crores
More than Rs. 50 Crores6.50%6.50 % will be paid on incremental balances above Rs. 50 Crores
Source: Bank Website  
Equitas Small Finance Bank

Equitas Small Finance Bank

Equitas Small Finance Bank provides regular savings account with special benefits such as a requirement of Average Monthly Balance (AMB) of Rs 10,000, zero maintenance charges, a cheque of 25 leaves free per quarter, nomination facility, free debit card issuance, and more. The bank is giving the following interest rates on savings accounts as of November 15, 2021.

Daily Closing BalanceRate Slab
Up to ₹ 1 lakh3.50%
Above ₹ 1 lakh and upto ₹ 5 lakhs6.00%
Above ₹ 5 lakhs and upto ₹ 50 lakhs7.00%
Above ₹ 50 lakhs5.50%
Source: Bank Website 
AU Small Finance Bank

AU Small Finance Bank

Interest on savings accounts at AU Small Finance Bank will be determined daily and paid out monthly (i.e. at the end of each month). In addition to higher interest rates and monthly interest payouts, the bank offers a more convenient option to create a savings account from anywhere via its Video Banking service. The bank provides unique perks on standard savings accounts, including interest rates up to 7% on your savings account, 24x7 access to your funds using the AU 0101 App or AU 0101 NetBanking, a Visa Gold Debit Card, doorstep banking services, and more. The following are the applicable Interest Rates on Savings Bank Deposits as of October 5, 2021.

Savings Account Incremental Amount slabRate of Interest (per annum)
Balances less than INR 1 Lac3.50%
Balances from INR 1 Lac to less than INR 10 Lacs5.00%
Balances from INR 10 Lacs to less than INR 25 Lacs6.00%
Balances from INR 25 Lacs to less than INR 1 Crore7.00%
Balances from INR 1 Crore to less than INR 10 Crores6.00%
Source: Bank Website 
Utkarsh Small Finance Bank

Utkarsh Small Finance Bank

Anyone residing in India or a Hindu Undivided Family can establish a Utkarsh Standard Savings Account. The account comes with perks like free unlimited domestic transactions at any ATM, free NEFT/RTGS, a daily ATM withdrawal limit of Rs 40,000 and the shopping limit is 1,00,000 at (POS) and more. Customers from metro/urban areas must maintain an average quarterly balance (AQB) of Rs 5,000, while semi-urban/rural customers must maintain an average quarterly balance of Rs 2,500. The rates of interest on savings accounts as of March 1, 2022 are listed below. Interest will be calculated on a daily basis and credited quarterly.

Balance in RsRate of Interest w.e.f March 01, 2022
Balance Upto 1 Lakh3.75% p.a.
Incremental balance above 1 Lakh upto 25 Lakhs6.50% p.a.
Incremental Balance above 25 Lakhs7.00% p.a.
Source: Bank Website 
Shivalik Small Finance Bank

Shivalik Small Finance Bank

Shivalik Small Finance Bank offers standard savings account with fantastic features such as a higher interest rate ranging from 3.50 percent to 7%, a debit card limit of Rs. 2,00,000, unlimited cheque leaves, free fund transfers across channels, free locker operations, and the issuance of Shivalik Classic RuPay Debit Card and Shivalik Platinum RuPay Debit Card. The bank is giving the following interest rates on saving bank accounts as of December 1st, 2021.

Balance slab in RsInterest rate p.a.
Balance upto 1 Lac3.50%
Above 1 Lac to 5 Lacs3.50%
Above 5 Lacs to 10 Lacs3.50%
Above 10 Lacs to 25 Lacs4.00%
Above 25 Lacs to 50 Lacs4.00%
Above 50 Lacs to 1 Crore4.50%
Above 1 Crore to 2 Crore5.00%
Above 2 Crore to 5 Crore7.00%
Above 5 Crore to 7 Crore7.00%
7 Crore and above7.00%
Source: Bank Website 
Fincare Small Finance Bank

Fincare Small Finance Bank

Customers can open Imperial Savings Accounts, Smart Saver Accounts, Priority Accounts, Prime Savings Accounts, Pro-Priority Accounts, 101 First, and 101 Priority accounts with the bank. These accounts provide a variety of features, including a convenient quarterly interest payout, a simple account opening process, attractive debit card offers and much more. The bank is offering the following savings account interest rates as of July 1, 2021.

Savings Account Slab In RsInterest Rates In % (p.a.)
Up to and including Rs 1 lakh4.50%
Above 1 lakh & including 5 lakh6.00%
Above 5 lakh & including 1 Cr7.00%
Above 1 Cr & including 2 Cr6.00%
Above 2 Cr & including 5 Cr5.75%
Above 5 Cr & including 15 Cr4.50%
Above 15 Cr & including 20 Cr4.00%
Above 20 Cr & including 30 Cr3.25%
Above 30 Cr & including 50 Cr3.00%
Above 50 Cr3.00%
Source: Bank Website 

Story first published: Monday, March 14, 2022, 14:38 [IST]
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