Following the Reserve Bank of India’s (RBI) repo rate hike in the last financial year from 4 percent to 6.50 percent, several banks raised interest rates on savings accounts. Smaller private banks and small finance banks offer rates up to 8 percent on savings account, which is higher compared to leading private banks.
Make a practice to keep part of your surplus income in savings accounts for liquidity and emergencies during uncertain times. Here are the private banks offering the best interest rates on savings accounts. The data is compiled by BankBazaar.
3/10
DCB Bank offers interest up to 8 percent on savings accounts. Among private banks, this bank offers the best interest rates. The minimum balance requirement is Rs 2,500 to Rs 5,000.
4/10
Ujjivan Small Finance Bank is offering interest up to 7.5 percent on savings accounts. Among small finance banks, this bank offers the best interest rates.
5/10
Federal Bank is offering interest up to 7.15 percent on savings accounts. The average monthly balance requirement is Rs 5,000.
DBS Bank offers interest up to 7 percent on savings accounts. Among foreign banks, this bank offers the best interest rates. The average quarterly balance requirement is Rs 10,000 to Rs 25,000.
7/10
AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,000 to Rs 5,000, Rs 2,500 to Rs 10,000 and Rs 2,000 respectively.
8/10
IDFC First Bank and RBL Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 10,000 and Rs 2,500 to Rs 5,000 respectively.
9/10
Smaller private banks and small finance banks are offering higher interest rates on savings accounts compared to leading private and public sector banks to acquire new retail customers. You should choose a bank with a long-term track record, good service standards, a wide branch network, and ATM services across cities; a higher interest on savings accounts would be a bonus.
10/10
The interest rate on savings accounts for all BSE-listed private banks and small finance banks are considered for data compilation. BankBazaar compiled the data as of July 5, 2023. Banks whose websites don't advertise the data are not considered. The minimum balance requirement for the regular savings account and excluding a basic savings bank deposit (BSBD) account is considered.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
Currently, no banks offer an interest rate of 8% on savings accounts. However, some banks provide a 7% APY on checking accounts. These include Landmark Credit Union Premium checking account with an APY of 7.50%, and OnPath Credit Union High Yield checking account with an APY of 7.00%.
Which Bank Gives 7% Interest on Savings Accounts? Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000.
Two credit unions pay over 7% APY on accounts right now: Landmark Credit Union and OnPath Rewards High-Yield Checking. However, these are both checking accounts with limitations on eligible balances. Plenty of high-yield savings accounts pay over 5% APY on your total balance without making you jump through hoops.
Fincare Small Finance Bank savings account interest rates
The bank offers a 7% interest rate on balances above Rs 10 lakh to less than Rs 1 crore and a 7.25% interest rate on above Rs 1 crore to 5 crore on savings account balances.
What banks are offering 7% interest on CDs? Currently, no U.S. banks or credit unions are offering 7% APY on CDs. During August 2023, a few credit unions were offering 7% interest on CDs, but those were limited-time offers that are no longer available.
A market-leading savings account paying 8% has launched from Saffron Building Society – though not everyone can get it and you can only pay in a small amount each month.
DCB Bank offers up to 8% interest on savings accounts with balances ranging from Rs 10 lakh to less than Rs 2 crore. The bank pays 7.75% interest on savings account balances ranging from Rs 10 crore to less than Rs 200 crore. The rates are effective from September 27, 2023.
Introduction: My name is Mrs. Angelic Larkin, I am a cute, charming, funny, determined, inexpensive, joyous, cheerful person who loves writing and wants to share my knowledge and understanding with you.
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