Savings Account is the oldest and most common form of savings. The minimum balance required to maintain a savings account varies from bank to bank just like the rate of interest. Banks have a certain minimum balance limit which an account holder has to maintain else he/she has to pay the penalty. Some of the small finance banks offer better interest rates on savings as well as fixed deposit when compared to other top lenders.
IDFC First Bank savings account interest rate
Up to ₹1 Lakh 6.00%
> ₹1 Lakh 7.00%
For balances up to ₹1 lakh, IDFC First Bank gives an interest rate of ₹6% per annum (p.a.), and for more than ₹1 lakh in your savings account, the bank will give 7% interest
Utkarsh Small Finance Bank savings account interest rate
Balance upto ₹25 lakh 7%
Incremental balance above ₹25 Lakh to ₹10 crore 7.25%
Incremental balance above ₹10 crore 7.75%
For balances up to ₹25 lakh, Utkarsh Small Finance Bank gives 7% interest.
Ujjivan Small Finance Bank savings account interest rate
Up to 5 lakh 4%
> 5 lakhs to 50 lakh 5.50%
> 50 lakhs to 5 crore 6.75%
> 5 crore 7%
For balances up to ₹5 lakh in your savings bank account, Ujjivan Small Finance Bank gives 4%, and for more than ₹5 lakh to 50 lakh, the bank gives 5.50%
Equitas Small Finance Bank savings account interest rate
Up to ₹1 lakh 4.50%
Above ₹1 lakh and up to ₹1 cr 6.00%
Above Rs1 cr and up to ₹5 cr 7.00%
Above ₹5 cr and up to ₹30 cr 7.25%
Above ₹30 cr and up to ? 50 cr 7.50%
Equitas Small Finance Bank gives 4.5% interest rate on savings up to ₹1 lakh. For balances above ₹1 lakh and up to ₹1 crore, the bank gives 6.00%.
These interest rates are higher than country’s top lender State Bank of India (SBI). SBI savings accounts fetch an interest rate of 3.25% on deposits up to ₹1 lakh. The interest rate on SBI savings bank deposits with above ₹1 lakh is 3%.
The insurance cover on your bank deposits have been increased five times. While presenting Budget 2020, Union Finance Minister Nirmala Sitharaman announced increasing the insurance cover on bank deposits from ₹1 lakh to ₹5 lakh. Ever since the crisis broke out at the Punjab and Maharashtra Co-operative (PMC) Bank, there have been demands to raise the insurance cover on deposits.