MUMBAI: Some small finance banks offer high interest rates on savings accounts, which is higher than the fixed deposit rates of most banks. But these come with conditions.
Take Utkarsh Small Finance Bank as an example. Customers can get interest rates between 5% and 7.25%, according to data from Paisabazaar.com.
The 5% interest rates are for balance up to ₹1 lakh. If a customer maintains a balance between ₹1 lakh and ₹25 lakh, the rates are 6%. The highest rate, 7.25%, is available to those who maintain a balance of over ₹25 lakh.
The minimum average quarterly balance (AQB) varies depending on the account. For Standard Savings Account and Premium Savings Account, the AQB must be ₹5,000 and ₹50,000 in urban areas, respectively.
Among private banks, Bandhan Bank, RBL Bank, and IDFC First offer the highest rates—7.15%, 6.5%, and 6%, respectively. Most banks require customers to maintain an extremely high balance for these rates.
For its Digital Savings Account, RBL Bank requires customers to maintain a balance between ₹3 crore and ₹5 crore to avail the highest rate—6.5%, according to its website. Balances up to ₹1 lakh get an interest rate of 4.75%, and those who maintain between ₹1 lakh and ₹10 lakh get 6%.
Bandhan Bank offers the highest interest rate, 7.15%, to those who maintain a daily balance of over ₹50 crore, according to its website. Customers who maintain a daily balance of below ₹1 lakh get a 3% interest rate, and those who have a balance between ₹1 lakh and ₹10 crore, get 6%.
IDFC First Bank, on the other hand, offers a 6% interest rate for balances up to ₹1 crore. For higher amounts, the interest rates are lower. Between ₹1 crore and ₹5 crore, the bank offers a 5% rate, according to its website.
Among public sector banks, IDBI Bank and Punjab National Bank offers higher interest rates of 3.5% for amounts above ₹50 lakh and ₹100 crore, respectively.
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