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Top 5 Banks Promising Higher Interest Rates Than FD On Savings Accounts In 2021

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A savings account is a type of short-term investment where you not only earn interest rates on your outstanding deposits but also are allowed to withdraw your funds anytime and anywhere you want which is not possible in fixed deposits as they have a lock-in period. Both savings accounts and fixed deposits are the secure investment bet as the interest rates are not influenced by market fluctuations but fixed deposits have a range of benefits such as additional interest rates to senior citizens, tax benefits, periodic interest payouts, cumulative options, and so on.

 

Apart from these benefits, there are now some banks that are offering higher interest rates than fixed deposits of leading public sector banks on savings accounts. As a smart investor, you should always be prepared for unforeseen financial emergencies, and as a consequence, you can easily withdraw funds from a savings account, but withdrawing funds from a fixed deposit may result in penalties. So by considering the liquidity aspect and interest rates, we've compiled a list of the top 5 small finance banks that provide better interest rates on savings accounts than fixed deposits and allow DICGC deposit safety up to Rs 5 lakhs.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank

Here are the latest interest rates on savings accounts of Utkarsh Small Finance Bank which are in force from 1 July 2021. The below-listed interest rates are calculated on daily closing balance and credited quarterly, according to the bank.

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

Ujjivan Small Finance Bank
 

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank's interest rates for domestic and non-resident saving accounts, effective March 6, 2021, are listed below.

AmountInterest Rate (p.a.)
Up to 1 lakh 4.00%
More than 1 Lakh to 25 Lakhs 7.00%
More than 25 lakhs to 10 Crores 6.00%
More than Rs 10 crores 6.75%
Source: Bank Website

AU Small Finance Bank

AU Small Finance Bank

The following are the applicable interest rates on Savings Bank Deposits of AU Small Finance Bank as of July 16, 2021.

Savings Account Incremental Amount slabRate 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

Equitas Small Finance Bank

Equitas Small Finance Bank

Equitas Small Finance Bank's savings account interest rate, effective from August 16, 2021, is listed below.

Daily Closing BalanceRate 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

Fincare Small Finance Bank

Below are the most recent interest rates on savings accounts of Fincare Small Finance Bank which are in force from 01 July 2021.

Savings Account Slab (In Rs)Interest Rate 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

Read more about: savings account
Story first published: Wednesday, August 18, 2021, 15:05 [IST]
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