Safe Investment Options: With an extremely diverse customer base and a competitive environment among banks of all sizes, more banks are generally raising interest rates. To draw in customers, some financial institutions are even going so far as to offer savings accounts with interest rates as high as 8%.
RBI’s Repo Rate Ripple Effect
Interest rates on savings accounts have changed significantly in India since the Reserve Bank of India (RBI) decided to raise the repo rate. Although major private banks offer relatively modest interest rates, smaller private banks and small finance banks have taken the lead, offering interest rates as high as 8%. Among them are a few of them:
DCB Bank
With interest rates on savings accounts reaching up to 8%, this bank is the best option among private banks when it comes to interest rates. The required minimum balance varies between ₹2,500 and ₹5,000.
Ujjivan Small Finance Bank
This bank offers competitive interest rates on savings accounts, with certain balance tiers reaching up to 7.50%. As a result, they are now regarded as the best option for interest rates among small finance banks.
Federal Bank
For savings accounts, this bank is offering a competitive interest rate of up to 7.15%. Although the maximum interest rate offered by Ujjivan SFB is marginally higher, there is a higher minimum balance requirement. Therefore, Federal Bank might be a good option for you if you can maintain a minimum balance of ₹5,000.
DBS Bank
This bank positions itself as a strong player among foreign banks in India by providing savings accounts with an enticing interest rate of up to 7%. This interest rate is applicable to certain balance ranges and may be higher than those provided by other foreign banks operating in the nation. Since higher balances are rewarded with better rates, the tiered system encourages saving. The ₹10,000 to ₹25,000 average quarterly balance requirement, however, might be difficult for some people to meet.
AU Small Finance Bank, Equitas Small Finance Bank, and Suryoday Small Finance Bank
These banks offer savings accounts with tempting interest rates of up to 7%, making them desirable options for people seeking high returns on their savings. Each bank, of course, has its own minimum monthly balance requirements. Customers of Suryoday Small Finance Bank are permitted to keep a minimum of ₹2,000 in their accounts, while Equitas Small Finance Bank requires a minimum balance of ₹2,500 to ₹10,000. AU Small Finance Bank requires its customers to maintain a monthly balance between ₹2,000 and ₹5,000.
IDFC First Bank and RBL Bank
With savings accounts yielding interest rates as high as 7%, these two banks offer competitive interest rates. They offer free transactions for necessary services like RTGS, NEFT, and cheque printing in addition to this rate for balances over 1 lakh. These banks also provide a wide range of financial products, such as investments, insurance, and loans.
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