Savings accounts: These banks are offering 7% interest

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There are various advantages of a savings account. It is the first step in financial inclusion. One has to open an account before doing any transaction in a bank. Among several other benefits one can also earn interest from a savings bank account. Amid falling interest rates, some small finance banks are still offering interest rates on savings accounts that are better than many in the peer group. An individual can even get up to 7 percent interest per annum on a savings account which is significantly higher than top lenders like State Bank of India (SBI), HDFC Bank and ICICI Bank. These major lenders of our country offer interest rates between 2.5 to 3.5 percent in savings bank accounts.

Let’s take a look at the banks offering best interest rates in savings accounts:

Ujjivan Small Finance Bank

It is offering a minimum 4 percent interest rate on balance up to Rs 1 lakh. The rate goes up to 7 percent for amount more than Rs 1 lakh and under Rs 25 lakh. This rate has been applicable from March 6, 2021. Among all commercial and small finance banks, this is the highest rate.

AU Small Finance Bank

AU Small Finance Bank, another small finance bank, is offering a minimum rate of 3.50 percent and a maximum rate of 7 percent on savings accounts. Customers can get maximum interest on balances from Rs 25 lakh to less than Rs 2 crore.

Equitas Small Finance Bank

This 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. They are offering maximum interest on balance of above 1 lakh and up to 1 crore.

Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is also offering interest rates between 3.75 percent and 7 percent interest on savings accounts. Customers can get maximum interest on an incremental balance of above Rs 25 lakh up to Rs 10 crores. This rate has been applicable from October 1, 2021.

Fincare Small Finance Bank

This bank is also offering an interest rate of up to 7 percent on savings account balance ranging from Rs 1 lakh to Rs 50 crore or above. This rate has been applicable from July 1, 2021.