An interest-bearing deposit account kept at a bank or other financial institution is referred to as a savings account. Despite the relatively low-interest rates offered by these accounts, their security and dependability make them a top choice for keeping cash on hand for urgent needs.
Savings accounts are the primary choice of savings and investment for most families in the country. Even with restrictions on how much and how often you can withdraw from these accounts, these are much more liquid than most other alternatives and risk is extremely low to none for most customers.
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Interest rates on savings accounts vary from bank to bank. With the exception of promotions promising a fixed rate until a certain date, banks and credit unions might change their rates at any time depending upon the reverse-repo rate set by the Reserve Bank of India. Most banks also offer an extra 50 bps or 0.50 percent in interest rate to senior citizens on top of existing rates. Here is the list of interest rates on saving accounts-
Ujjivan Small Finance Bank is currently offering up to 7.5 percent interest on its savings account.
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Banks like AU Small Finance Bank, DCB Bank, and Equitas Small Finance Bank are offering up to 7 percent interest rates on savings accounts. For the savings account in AU Small Finance Bank, an average balance of Rs 2,000 to Rs 5,000 monthly is necessary. While in the Equitas Small Finance Bank a balance of Rs 2,500 to Rs 10,000 should be maintained. An average monthly balance in DCB Bank is required to be Rs 2,500 to Rs 5,000.
Banks like Bandhan Bank, CSB Bank, and RBL Bank are offering up to 6.5 percent interest rates on savings accounts. The average monthly balance in these three private banks should be in the range of Rs 2,500 to Rs 5,000.
