Top 4 Banks Promising Up To 7% Returns On Savings Accounts

Investing in a savings account is the first step towards a personal finance journey for novice investors with a low-risk appetite and a short-term financial objective. Savings accounts are a must-have for every sort of investor when it comes to interest-bearing savings, liquidity, and deposit safety of up to Rs 5 lakhs guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Although it is completely obvious that savings account interest rates are significantly lower than those offered on other products such as fixed deposits and recurring deposits. However, we have compiled a list of the top four small finance banks in terms of interest rates, which are currently providing higher interest rates on savings accounts than those offered by leading banks such as SBI, HDFC, Axis, ICICI Bank, and other public and private sector banks on fixed deposits.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank savings account comes with a minimum Monthly Average Balance requirement of Rs 5,000/-. Customers having a savings account will also get a RuPay Classic Debit Card provided by RuPay (NPCI) which comes with a range of benefits. Ujjivan SFB is currently offering the following interest rates on savings accounts which are effective from 6th March 2021. The applicable interest will be calculated on day-end balances maintained in the savings account and paid out on a quarterly basis. The higher interest rate will be applied and paid only on the basis of the balances maintained as per the below slabs.

Amount	Interest Rate (p.a.)
Up to 1 lakh	4.00%
> 1 Lakh to 25 Lakhs	7.00%
> 25 lakhs to 10 Crores	6.00%
> 10 crores	6.75%
Source: Bank Website

AU Small Finance Bank

The interest on the savings accounts indicated below will be determined daily and paid monthly, at the end of each month. The interest rates stated below are for additional balances that are available and apply to the amount slab specified.

Savings Account Incremental Amount slab	Rate 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 2 Crores	7.00%
Balances from INR 2 Crores to less than INR 10 Crores	6.00%
Source: Bank Website, w.e.f. 16th July, 2021

Fincare Small Finance Bank

With effect from 1st July 2021, Fincare Small Finance Bank has revised interest rates on a savings account. The following interest rates are applicable for the incremental balances that are available in the account corresponding to the specified amount slab.

Savings Account Slab In Rs	Interest Rates In % (p.a.)
Up to and including Rs 1 lakh	4.50%
Above 1 lakh & including 5 lakh	6.00%
Above 5 lakh & including 1 Cr	7.00%
Above 1 Cr & including 2 Cr	6.00%
Above 2 Cr & including 5 Cr	5.75%
Above 5 Cr & including 15 Cr	4.50%
Above 15 Cr & including 20 Cr	4.00%
Above 20 Cr & including 30 Cr	3.25%
Above 30 Cr & including 50 Cr	3.00%
Above 50 Cr	3.00%
Source: Bank Website

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank allows savings accounts in metro/urban banking branches to have an average quarterly balance of Rs 5,000, with free unlimited domestic transactions at any ATM. The interest rates shown below are calculated on a daily basis and paid quarterly.

Balance in Rs	Rate of Interest W.E.F. July 01,2021
Balance Upto 1 Lakh	5.00% p.a.
Incremental balance Above 1 Lakh upto 25 Lakhs	6.00% p.a.
Incremental Balance Above 25 Lakhs upto 10 Crores	7.00% p.a.
Incremental Balance Above 10 Crores	6.75% p.a.
Source: Bank Website