These small finance and payment banks offer up to 7% interest on savings accounts Interest rates on savings accounts are much higher than those of public or large private banks
February 09, 2022 / 11:05 AM IST
Keep a part of your surplus income in savings accounts for liquidity and emergencies during uncertain times. Amid falling interest rates, small finance and payment banks offer higher interest rates.
Small finance and payment banks have low cost, high tech-enabled business models, because of which they can offer better value to the customers. The interest rates on savings accounts offered are higher over the mainstream banks. These banks offer a suite of financial products to serve customers all financial needs, including saving, investing, borrowing, and insurance requirements.
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.
Equitas Small Finance Bank and Fincare Small Finance Bank offer interest rates up to 7 percent on savings accounts. Among small finance banks, this bank offers the best interest rates.
ESAF Small Finance Bank offers 6.5 percent interest if the customer maintains balance above Rs 1 lakh in their savings account. The bank offers 4 percent interest for balances upto Rs 1 lakh.
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.
Airtel Payments Bank offers up to 6 percent interest to savings account customers. Among payment banks, this bank offers the best interest rates. The Reserve Bank of India (RBI) has recently categorised this bank as a scheduled bank. North East Small Finance Bank also offers up to 6 percent interest to savings account customers. We compiled the interest rate on savings accounts for small finance banks and payments bank from bank websites. The minimum balance requirement for the regular savings account and excluding a basic savings bank deposit (BSBD) account is considered.