There are several benefits of having a savings account: liquidity, earning interest, safety of funds, additional earnings because of auto sweep facility between savings account and fixed deposit, etc. Amid falling interest rates, small finance banks offer higher interest rates, as per data compiled by BankBazaar. Here are the top five banks offering the best interest rates on savings accounts.
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Small finance banks are offering higher interest rates on savings accounts compared to private and public sector banks to acquire new retail customers. You should choose a bank with a long-term track record, good service standards, wide branch network and ATM services across cities; a higher interest on savings accounts would be a bonus.
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Ujjivan Small Finance Bank is offering interest rates up to 7 percent on savings accounts. Among small finance banks, the best interest rates are offered by this bank.
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AU Small Finance Bank is offering interest rates up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,000 to Rs 5,000.
Equitas Small Finance Bank is offering interest rates up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,500 to Rs 5,000.
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DCB Bank offers interest rates of up to 6.75 percent on savings accounts. Among private banks, this bank offers the best interest rates. The monthly balance requirement is Rs 2,500 to Rs 5,000.
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Suryoday Small Finance Bank is offering interest rates up to 6.25 percent on savings accounts. The average monthly balance requirement is Rs 2,000.
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The interest rate on savings accounts for all BSE listed small finance banks and private banks are considered for data compilation. BankBazaar compiled the data as of September 15, 2021. Banks whose websites don't advertise the data are not considered. The minimum balance requirement for the regular savings account and excluding a basic savings bank deposit (BSBD) account are considered.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
