INSUBCONTINENT EXCLUSIVE:
Some small finance banks offer as high as 6.75% interest on savings accounts.Small finance banks offer attractive interest rates across
various forms of deposits
Interest rates of small finance banks are much higher than larger peers like State Bank of India (SBI), HDFC Bank and ICICI Bank
Interest rates of small finance banks like AU Small Finance Bank, Jana Small Finance Bank and Equitas Small Finance Bank are higher than
larger peers on all three key deposit schemes - savings accounts, fixed deposit or FD accounts, and recurring deposit or RD accounts.While
mainstream banks offer a maximum interest rate of 4 per cent on savings accounts, some small finance banks offer as high as 6.75 per
cent.Why small finance banks offer higher interest rates than large lendersSmall finance banks are comparatively new in business
They offer deposit schemes to under-banked people
Door-step services and higher interest rates are some of the ways through which they try to woo customers, say experts.However, not many
people know about them and thus prefer to deposit their savings in larger banks like SBI.But think of this: savings account interest rates
of small finance banks are as good as fixed deposit or recurring deposit interest rates of large banks
This means that if you deposit money in their savings accounts, you neither need to block your money like you do in an FD account nor do you
need to pay regular instalments like on RD accounts
Yet, the interest rates that you will get on savings deposits will be as good as those on FD and RD accounts.ICICI Bank offers an FD
On the other hand, Jana Small finance Bank offers the same interest rate on savings accounts.Given below is a comparison of savings account
interest rates of AU Small Finance Bank, Jana Small Finance Bank and Equitas Small Finance Bank:Savings account interest rates of AU Small
Finance BankOn savings account balances less than Rs 1 lakh, AU Small Finance Bank pays an interest rate of 5 per cent
On savings account balances from Rs 1 lakh to less than Rs 10 lakh, it pays 6.50 per cent interest
On savings account balances of Rs 10 lakh and above, the interest rate of AU Small Finance Bank is 6.75 per cent
These interest rates are paid on an annual basis.Savings account interest rates of Jana Small Finance BankJana Small Finance Bank pays an
interest rate of 6 per cent per annum on savings accounts.Savings account interest rates of Equitas Small Finance BankOn savings account
balances up to Rs 10 lakh, Equitas Small Finance Bank pays an interest rate of 6 per cent per annum
Savings account balances above Rs 10 lakh and up to Rs 5 crore, fetch an interest rate of 6.50 per cent per annum.SBI pays an interest of
3.50 per cent per annum on saving deposits balance up to Rs
1 crore, and 4 per cent per annum on saving deposits balance above Rs
1 crore.Savings account deposits in ICICI Bank fetch an interest rate of 3.5 per cent for end of day account balance below Rs 50 lakh, and 4
per cent for end of day account balance of Rs 50 lakh and above.HDFC Bank pays an annual 4 per cent interest on balances of Rs
50 lakh and above and 3.5 per cent on balances below Rs 50 lakh.The above interest rates are taken from banks' websites.
