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Top 5 Banks Promising An Interest Rate of 7% On Savings Accounts In 2021
When it comes to your personal finances, the first step is opening a savings account for your short-term needs and to meet your regular expenses. The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures your deposits up to Rs. 5 lakh, so it's a safe bet to put your money in a savings account. You'll also get enticing perks like cashback or reward points on your ATM or debit card transactions, good interest rates for keeping a monthly average balance with a sweep in, passbook, net banking, and cheque book options, and more.
Savings account interest rates are low when compared to fixed deposit interest rates, but some banks can offer higher savings account interest rates than fixed deposit interest rates. Despite leading banks such as HDFC, State Bank of India (SBI), Axis Bank, ICICI Bank, and others promise savings account interest rates from 2.75 percent to 3.50 percent, certain small finance banks may provide savings account interest rates as high as 7%, which is something that you can't ignore. As a result, here are our selected top 5 small finance banks that are now offering an interest rate of up to 7% on savings accounts including deposit safety of DICGC.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank is currently giving the highest interest rate of 7% on domestic deposits with balances ranging from Rs1 lakh to Rs 25 lakhs. From March 6, 2021, the bank is promising the following interest rates on savings accounts.
| 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 |
Equitas Small Finance Bank
Equitas Small Finance Bank provides a 7% interest rate on a daily closing balance of over Rs 1 lakh and up to Rs 1 crore, with a minimum average monthly balance of Rs 10,000 and no maintenance charges. The following savings account interest rates are effective as of August 16, 2021.
| 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 |
Utkarsh Small Finance Bank
Utkarsh Small Finance Bank provides a 7% interest rate on an incremental balance of above Rs 25 lakh up to Rs 10 crores, as well as free unlimited domestic transactions at any ATM and free NEFT/RTGS transactions. From October 1, 2021, the following rates of interest are in force.
| Balance In Rs | Rate of Interest w.e.f October 1, 2021 |
|---|---|
| Balance Upto 1 Lakh | 3.75% p.a. |
| Incremental balance above 1 Lakh upto 25 Lakh | 6.00% p.a. |
| Incremental Balance above 25 Lakh upto 10 Crores | 7.00% p.a. |
| Incremental Balance above 10 Crores | 6.75% p.a. |
| Source: Bank Website |
AU Small Finance Bank
AU Small Finance Bank is promising a 7% interest rate on Domestic / NRE / NRO Savings Account balances of Rs 25 Lacs to Rs 1 Crore. The following are the current applicable interest rates on savings bank deposits as of October 5, 2021.
| 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 1 Crore | 7.00% |
| Balances from INR 1 Crore to less than INR 10 Crores | 6.00% |
| Source: Bank Website |
Fincare Small Finance Bank
This small finance bank is also offering an interest rate of up to 7% on savings account balances ranging from Rs 1 lakh to Rs 50 Cr or above. With effect from 1st July 2021, Fincare Small Finance Bank is promising the following 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 |
