Equitas Small Finance Bank hikes interest on saving account deposits

In order to attract deposits, small finance lender Equitas Small Finance Bank on Tuesday said it has increased the rate of interest on savings account having deposits between Rs 1 lakh to Rs 5 crore to 7 percent per annum from 5.5 percent. The new rates are applicable from Wednesday, the bank said in a release.

"We are offering customers 7 percent interest rate per annum having savings balance between Rs 1 lakh and Rs 5 crore. We believe that this will enable existing customers and also new to bank savings account holders an opportunity to save more with better returns,” the bank's president and country head (branch banking, liabilities, product and wealth), Murali Vaidyanathan, said.

The lender has two slabs in the savings account deposits - up to Rs 1 lakh and above.

The bank has left rates on savings account deposits up to Rs 1 lakh at 3.5 percent.

It has close to 6 lakh savings accounts.