7% Interest Rate On Saving Accounts Offered By These Private Banks (Updated List)
People are increasingly turning to savings accounts to put their money in instead of fixed deposits.
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Why Opt For A Savings Account?
A savings account offers many benefits such as earning interest, liquidity, safety of funds, additional earnings because of the auto sweep facility between savings account and fixed deposit, etc.
Other benefits to consider include online transactions, free debit cards, making online bill payments, applying for a loan,etc.
Small Private Banks
One can open such an account in any private or public sector banks.
You can opt for small private banks since they offer higher interest rates on savings accounts compared to leading private banks like HDFC Bank and ICICI Bank.
The following are the top private banks which offer the best interest rates on savings accounts.
AU Small Finance Bank
AU Small Finance Bank customers can earn up to 7 percent interest on savings accounts.
The average monthly balance must be between Rs 2,000 to Rs 5,000.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank offers interest rates up to 7 percent
Equitas Small Finance Bank
Equitas Small Finance Bank is offering interest rates up to 7 percent
The average monthly balance requirement is Rs 2,500 to Rs 10,000.
DCB Bank
DCB Bank offers interest rates of up to 6.5 percent.
The minimum balance requirement is Rs 2,500 to Rs 5,000.
Suryoday Small Finance Bank
Suryoday Small Finance Bank offers interest rates up to 6.25 percent.
The average monthly balance requirement is Rs 2,000.
What If A Bank Fails?
Small finance banks are directly regulated by the RBI, same as other big banks.
So if they fail, the depositor can turn to the insurance cover offered by the DICGC as per its deposit insurance plan.
DICGC or Deposit Insurance and Credit Guarantee Corporation is a specialised division of the RBI.
Insurance Cover
Depositors are insured up to a maximum of Rs 5 lakh for both principal and interest amounts they hold.
This cover was raised to Rs 5 lakh from Rs 1 lakh, effective from February 4, 2020.
The plan covers deposits such as savings accounts, fixed deposits (FD), current accounts, recurring deposits (RD), etc.
Ultimately it is advisable to choose a bank which has a long-term track record, good service standards, wide branch network and ATM services across cities.
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