A savings bank account is perhaps the most basic instrument for investors providing easy liquidity as well as fetching an interest on the money kept as a deposit. While several banks have recently lowered their interest rates on savings deposits, a few banks are still offering up to 7.50 percent on their savings account. These banks are known as small finance banks.
Live TV
Loading...
When compared to larger peers, interest rates on savings accounts in the case of small finance banks are higher for both regular citizens and senior citizens. This is because these banks by design are focused on financial inclusion.
Also read:
“They are primarily built to undertake basic banking activities to un-served and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganized entities,” according to AU small finance bank.
However, they can perform all basic banking activities just like any commercial bank.
Currently, IDFC First Bank claims to offer an interest rate of up to 7 percent on its savings deposits.
Another small finance bank—Ujjivan Small Finance Bank offers an interest rate of 4 percent for the balance of up to Rs 1 lakh, 5 percent for balance more than 1 lakh and up to Rs 5 lakh. It offers a 5.25 percent rate on a balance of more than 5 lakh and up to Rs 50 lakh. For a balance of over 50 lakh and up to Rs 5 lakh, the interest rate is 6.25 percent. The lender offers a 6.5 percent rate on balances that exceed Rs 5 crore.
Utkarsh Small Finance Bank, on the other hand, offers interest rates of 5 percent on a balance amount of up to Rs 1 lakh, 6 percent on incremental balance above Rs 1 lakh and up to Rs 25 lakh and 7.25 percent on incremental balance above Rs 25 lakh.
Equitas Small Finance Bank offers a rate of 3.50 percent on balances up to Rs 1 lakh. It offers 7 percent rate on balances above Rs 1 lakh and up to Rs 5 crore. For balance above 5 crore and up to Rs 30 crore, it offers a rate of 7.25 percent. The lender offers 7.50 percent rate on balances up to Rs 50 crore.
In comparison, State Bank of India (SBI) currently offers a 2.75 percent rate on deposits up to Rs 1 lakh and above it.
Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
First Published: Aug 11, 2020 1:59 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
I.N.D.I.A. bloc committed to predictable and stable tax environment: Jairam Ramesh
May 21, 2024 6:33 PM
Exclusive | INDIA bloc will ensure stable policy framework, simple GST, end tax terrorism: Jairam Ramesh
May 21, 2024 5:02 PM
Cong leaders 'failed' to protect party's constitution says FM Nirmala Sitharaman in Bihar
May 21, 2024 4:01 PM
Who will succeed Modi? Oppn thinks Amit Shah will, but PM said this
May 21, 2024 2:38 PM