Many small finance banks and new private banks have increased the interest on savings account after increasing the repo rate of RBI. Small finance banks and new private banks are paying more interest on savings accounts than big banks.
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Many small finance banks and new private banks have increased the interest on savings account after increasing the repo rate of RBI. Small finance banks and new private banks are paying more interest on savings accounts than big banks. You can use the surplus income in the savings account for liquidity and in times of emergency. At present, the maximum interest rate of 7.5 percent is available on the savings account in these small finance banks. Let us know about them in detail.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank currently offers an interest rate of up to 7.5 percent on a savings account.
AU Small Finance Bank, DCB Bank and Equitas Small Finance Bank
At present, interest is being received at the rate of up to 7 percent on the savings account in these three banks. It is necessary to maintain an average monthly balance of Rs 2,000 to Rs 5,000 in AU Small Finance Bank. Whereas, a balance of Rs 2,500 to Rs 10,000 is required in Equitas Small Finance Bank. You need to maintain a minimum balance of Rs 2,500 to Rs 5,000 in DCB Bank.
Bandhan Bank, CSB Bank and RBL Bank
At present, interest rate of up to 6.5 percent is available on savings account in these three banks. The average balance requirement in CSB Bank and RBL Bank ranges from Rs 2,500 to Rs 5,000. Whereas, the monthly average balance requirement in Bandhan Bank ranges from Rs 2,500 to Rs 5,000.
South Indian Bank and IndusInd Bank
In these two private banks, interest is being received at the maximum rate of 6 per cent on the savings account. In IndusInd Bank, a minimum balance of Rs 1,500 to Rs 10,000 has to be maintained in a month. Whereas, it is necessary to maintain a balance of Rs 1,000 to Rs 2,500 in South Indian Bank.
Small finance banks and new private banks are offering more interest to attract new customers. You should choose a bank which has a good track record over a long period of time, good service standards, large branch network and large number of ATMs. Apart from this, the benefit of better interest rate is available on the savings account.
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