List of Banks Providing Higher Interest Rates On Savings Accounts
Savings accounts are the most popular banking instrument in our country due to their safety, usability, and liquidity. These lay the groundwork for all of our financial priorities, including retirement strategies, spending goals, and so on. Based on your predicted returns, risk tolerance and wealth creation objectives savings accounts are a must bet for your personal finance. Interest rates on savings bank accounts are typically lower than those on fixed deposits. In comparison to major private banks, some private and small finance banks pay higher interest rates on savings accounts. It's crucial to consider how much interest banks offer for keeping the money in a savings account. Following a rigorous risk analysis, investors should always consider parking their money in a savings account. If you're seeking to open a savings account, below are some of the banks that are currently providing the best rates.
Savings Account Interest Rates
Currently, some private banks and small finance banks are promising higher interest rates in savings accounts. Bandhan Bank, RBL Bank and IndusInd Bank are for instance currently providing interest rates up to 7.15%, 6.5% and 6% respectively across the list of private sector banks. On the other hand there are some small finance banks such as Utkarsh Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank which are currently providing interest rates up to 7.25 and 7% respectively. In comparison to major private and large public sector banks, small finance banks pay higher interest rates on savings accounts. HDFC Bank and ICICI Bank, for example, pay 3 percent to 3.5 percent interest. Axis Bank and Kotak Mahindra Bank are now providing interest rates of up to 4%. On their savings accounts, the State Bank of India (SBI) is paying 2.70 percent interest and the Bank of Baroda is promising up to 3.20 percent interest. Here's the list of banks that are currently providing higher interest rates on savings accounts.
How Interest Earned From A Savings Account Is Taxed?
| Sr No. | Banks | Interest Rates In % p.a. |
|---|---|---|
| 1 | Utkarsh Small Finance Bank | 5 to 7.25 |
| 2 | Equitas Small Finance Bank | 3.5 to 7.25 |
| 3 | Bandhan Bank | 3 to 7.15 |
| 4 | Ujjivan Small Finance Bank | 4 to 7 |
| 5 | AU Small Finance Bank | 3.5 to 7 |
| 6 | Fincare Small Finance Bank | 3 to 7 |
| 7 | ESAF Small Finance Bank | 4 to 6.5 |
| 8 | RBL Bank | 4.75 to 6.5 |
| 9 | Suryoday Small Finance Bank | 4 to 6.25 |
| 10 | IndusInd Bank | 4 to 6 |
| 11 | IDFC First Bank | 3.5 to 6 |
| 12 | Yes Bank | 4 to 5.5 |
| 13 | DCB Bank | 3.25 to 5.5 |
| 14 | City Union Bank | 3.5 to 4 |
| 15 | Kotak Mahindra Bank | 3.5 to 4 |
| 16 | DBS Bank | 3 to 4 |
| 17 | Union Bank of India | 3 to 4 |
| 18 | Dhanlaxmi Bank | 3 to 4 |
| 19 | Punjab National Bank | 3 to 3.5 |
| 20 | Axis Bank | 3 to 3.5 |
| 21 | HDFC Bank | 3 to 3.5 |
| 22 | ICICI Bank | 3 to 3.5 |
| 23 | Punjab & Sind Bank | 3.1 |
| 24 | Indian Overseas Bank | 3.05 |
| Source: Bank Websites |