Banks offering 7% interest rates on savings accounts in 2022

Investment

oi-Vipul Das

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A savings account is a financial product that allows risk-averse investors with short-term goals or in need of emergency funds and provides security for their funds while generating decent returns. The DICGC insures your funds up to Rs. 5 lakhs, and savings accounts, as an interest-bearing account, are a must in your wallet when it comes to adequate liquidity. A normal savings account offers a number of benefits including a competitive interest rate, simple operation, multiple withdrawal and deposit options, no hidden fees, free debit cards, spectacular incentives, cash back on online transactions and much more. Interest rates on savings accounts are generally lower than interest rates on fixed deposits, but we have identified six small financial banks that offer interest rates of 7% on savings accounts, which is higher than fixed deposit interest rates offered by some of the major Indian banks, including SBI, HDFC, ICICI and Axis Bank.

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank

Effective March 6, 2021, Ujjivan Small Finance Bank is offering a savings account interest rate of up to 7%. Interest rates for domestic and non-resident accounts are shown below. These interest rates are based on the end-of-day savings account balances and are payable on a quarterly basis.

Rising Interest rate (pa)
Up to 1,000,000 4.00%
> 1 Lakh to 25 Lakh 7.00%
> 25 lakhs to 10 Crores 6.00%
> 10 crores 6.75%
Source: Bank website
Equitas Small Finance Bank

Equitas Small Finance Bank

On savings accounts, the bank is offering a rate of up to 7.00% from November 15, 2021. Interest will be calculated on the basis of the daily closing balance of the account and paid quarterly by the bank.

Daily Closing Balance Rate slab
Up to Rs 1 lakh 3.50%
Above Rs 1 lakh and up to Rs 5 lakhs 6.00%
Above Rs 5 lakhs and up to Rs 50 lakhs 7.00%
Above Rs 50 lakhs 5.50%
Source: Bank website
AU Small Financial Bank

AU Small Financial Bank

AU Small Finance Bank is offering an interest rate of up to 7.00% on savings accounts effective October 5, 2021. The bank will determine interest on the savings account daily and pay it monthly.

Savings account incremental amount slab Applicable interest rate (per year)
Balances below INR 1 Lac 3.50%
Balances from INR 1 Lac to less than INR 10 Lacs 5.00%
Balances ranging from INR 10 Lacs to less than INR 25 Lacs 6.00%
Sale from INR 25 Lacs to less than INR 1 Crore 7.00%
Balances from INR 1 Crore to less than INR 10 Crore 6.00%
Source: Bank website
Fincare Small Corporate Bank

Fincare Small Corporate Bank

Fincare Small Finance Bank offers up to 7% interest rate on savings accounts. The bank is offering the interest rates shown below on savings accounts starting July 1, 2021.

Savings account slab in Rs Interest rate In % (pa)
Up to Rs 1 lakh inclusive 4.50%
Above 1 lakh and including 5 lakh 6.00%
Above 5 lakh and 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
Utkarsh Small Finance Bank

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is offering an interest rate on savings accounts of up to 7% from October 1, 2021. Interest is determined daily and credited quarterly to savings accounts by the bank.

Balance in Rs Interest rate as of October 1, 2021
Balance up to 1 Lakh 3.75% per year
Incremental balance above 1 Lakh up to 25 Lakh 6.00% per year
Incremental balance above 25 Lakh up to 10 Crores 7.00% per year
Incremental balance above 10 crore 6.75% per year
Source: Bank website
Shivalik Small Finance Bank

Shivalik Small Finance Bank

The bank is offering an interest rate of up to 7% on savings accounts starting December 1, 2021. Interest is determined on the end-of-day balances in the savings account and paid quarterly by the bank.

Balance slabs Interest rate pa
Balance up to 1 Lake 3.50%
Above 1 lake to 5 lakes 3.50%
Above 5 lakes to 10 lakes 3.50%
Above 10 lakes to 25 lakes 4.00%
Above 25 lakes to 50 lakes 4.00%
Above 50 Lacs at 1 Crore 4.50%
Above 1 Crore to 2 Crore 5.00%
Above 2 Crore to 5 Crore 7.00%
Above 5 Crore to 7 Crore 7.00%
7 crore and more 7.00%
Source: Bank website

Article first published: Wednesday, March 2, 2022, 12:49 p.m. [IST]

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