When compared to Govt Banks and Some leading Private banks, Some Small private Banks and Small Finance Banks provide high-interest rates of up to 8% on savings accounts to attract Accountholders towards them. The hike in rates occurred when the RBI hiked the Repo Rate from 4% to 6.50% in the most recent fiscal year.
Following are the names of the Private Banks and SFBs Providing higher Interest Rates:
1. On savings accounts, Ujjivan Small Finance Bank offers interest rates of up to 7.5 percent. Among small finance banks, this bank has the most competitive interest rates.
2. On savings accounts, DCB Bank is currently offering interest rates of up to 8%. Among private banks, this bank offers the best interest rates. Customers can maintain a minimum balance of between Rs 2,500 and Rs 5,000 in this bank’s savings account.
3. Interest rates on savings accounts at Federal Bank can reach 7.15 percent. The required minimum balance is Rs. 5,000.
4. On savings accounts, DBS Bank offers interest rates of up to 7%. Among international banks, this bank provides the best interest rates. Between Rs. 10,000 and Rs. 25,000 is the typical quarterly balance requirement.
5. Up to 7% interest is offered on savings accounts by AU Small Finance Bank, Equitas Small Finance Bank, and Suryoday Small Finance Bank. Each of these balance requirements has an average monthly balance of between Rs. 2,000 and Rs. 5,000, Rs. 2,500 and Rs. 10,000, and Rs. 2000 respectively.
6. Up to 7% interest is being offered on savings accounts by IDFC First Bank and RBL Bank. The required minimum and average monthly balances are 10,000 and 2,500 to 5,000 rupees, respectively.
To attract new retail customers, smaller private and finance banks are offering higher interest rates on savings accounts than larger private and public sector banks. You should pick a bank with a solid reputation, high standards for customer service, a large branch network, and ATM services in numerous cities. An added benefit would be higher savings account interest rates.
