Top 5 Banks Offering Higher Returns Up To 7% On Savings Accounts In 2021

Apart from interest-bearing investments when it comes to higher liquidity, safety of funds, auto sweep facility for additional interest, timely payments of debts, convenient fund transfers, deposits, and withdrawals, a savings account is the only one that you must have as a beginner investor or an investor going to make his first step towards personal finance. As a new investor in the field of finance and investment, the only important factor that matters the most is his or her deposit safety and as a result, the subsidiary of Reserve Bank of India (RBI) Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance cover of up to Rs 5 lakhs on effective deposit.

On the other side, it is well known that savings accounts interest rates are low if compared to that of fixed deposits of banks, but there are banks dubbed as small finance banks that are currently promising higher interest rates than fixed deposits on savings accounts. By keeping all these factors in the consideration of an investor, here are the top 5 small finance banks that are offering good returns on savings accounts in 2021.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank offers up to 7% interest rate on savings accounts, which is undoubtedly much higher than the interest rates on fixed deposits of leading public sector banks. This bank offers a range of savings accounts for covering the needs of different types of customers such as Garima Savings Account, Regular Savings Account, Privilege Savings Account, Minor Savings Account, Senior Citizen Savings Account, and Digital Savings Account. Below are the interest rates on domestic and non-resident savings accounts of Ujjivan Small Finance Bank which are in force from 6th March 2021.    

Amount	Interest Rate In % (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

Utkarsh Small Finance Bank

Among the small finance banks, Utkarsh Small Finance Bank also offers higher interest rates up to 7% on savings accounts. For different types of customer segments, the bank offers a plethora of savings account options such as Standard Savings Account, Premium Savings Account, Geo-Nex Savings Account, Salary Account, Basic Savings Bank Deposit Account, and Basic Savings Bank Deposit Account (small). Here are the interest rates on domestic savings accounts which are in force from 1st July 2021.

Balance in Rs	Rate of Interest
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

Equitas Small Finance Bank

Equitas Small Finance Bank also offers different types of savings accounts such as Eva Savings Account, Eva Elite Savings Account, Wings Savings Account, Regular Savings Account, Selfie Savings Account, ELITE, My Savings Account, and Basic and Small Savings Account. With effect from 16th August 2021, Equitas Small Finance Bank is promising the following interest rates on savings accounts.

Daily Closing Balance	Rate Slab
Up to Rs 1 lakh	3.50%
Above Rs 1 lakh and upto Rs 1 cr	7.00%
Above Rs 1 cr	6.00%
Source: Bank Website

Fincare Small Finance Bank

With up to 7% interest rates on savings accounts, Fincare Small Finance Bank allows free withdrawals in more than 2 lakh ATMs, free transactions across NEFT, IMPS, RTGS, paperless account procedure, 24/7 internet banking facility, amazing debit card offers and much more. This small finance bank offers a range of savings account options such as Priority Account, Prime Savings Account, Priority Plus Account, Pro-Priority Savings Account, 101 First, 101 Priority, BSBDA Account, Shakti Account, and Smart Saver Account. With effect from 1st July 2021, Fincare Small Finance Bank offers the following interest rates on savings accounts.

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

AU Small Finance Bank

Along with higher interest rates of up to 7% AU Small Finance Bank offers a range of savings accounts such as AU Savings Account, AU Salary Account, AU Institution Account, AU Senior Citizen Account, AU Women Account, AU Kids Account, AU NRI Account, AU Student Account, AU ABHI Account, and AU Digital Savings Account. With effect from 16th July 2021, AU Small Finance Bank is offering the below-listed interest rates on domestic, NRE, NRO savings accounts.

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