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.
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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.
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.
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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.
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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.
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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.
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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.
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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.
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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 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.
As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
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.
Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.
There are several interest rates available for a savings account, and this is our handpicked list of some of the highest interest rates bearing savings accounts:
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.
There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union Premium Checking Account, and OnPath Rewards High-Yield Checking.
If you're dealing with a particularly large lump sum, it's often beneficial to distribute the money across various savings and investment vehicles. This not only provides a safety net but also ensures tax efficiency.
Unity Small Finance Bank offers FD interest rates ranging from 4.50% to 9% for tenures maturing between 7 days and 10 years to general citizens. The highest interest rate of 9% is offered on FDs maturing in 1001 Days. The rates are effective from October 9, 2023.
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