5 banks offering 7-7.5% interest rate on savings accounts - Savings account interest rates (2024)

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Mar 14, 2023, 02:43:31 PM IST

Savings account interest rates

Savings account interest rates differ depending on the balances in the account. Some banks pay interest on an incremental basis on their savings account. Here are the banks offering 7% to 7.5% interest rate on savings accounts.

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Ujjivan Small Finance Bank

The Ujjivan SFB offers 3.50% on savings account deposits up to Rs 1 lakh and 6% on balances over Rs 1 lakh to Rs 5 lakh. For savings account balances over Rs 5 lakh to Rs 25 crore, interest rate offered is 7% and 7.50% on balances over Rs 25 crore. These rates are effective from November 1, 2022.

According to the Ujjivan SFB, “Interest is calculated on day-end balances maintained in the savings account and paid out on a quarterly basis. The higher interest rate will be applied and paid only basis the balances maintained as per slabs.
Ex: If a customer maintains Rs.120,00 in the savings account, 3.50% interest will be earned for Rs.100,000 and 6.00% interest will be earned for the remaining Rs.20,000.”

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Equitas Small Finance Banks

Equitas SFB offers 3.50% on balances up to Rs 1 lakh, 5.25% on balances above Rs 1 lakh to 5 lakhs. For above Rs 5 lakh, the bank is offering 7%. These rates are effective from December 14, 2022.As per the website, “Interest will be calculated on the daily closing balance of the account. Interest will be paid on quarterly basis by direct credit in the savings account. Slabs rates are applicable on the incremental amount based on the closing balance.”

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Jana Small Finance Banks

Interest will be made as follows: 3.50% on accounts under Rs. 1 lakh, 7.00% on incremental balances over Rs. 1 lakh and up to Rs. 10 lakh, and 7.25% on incremental balances over Rs. 10 lakh and up to Rs. 10 crore. For balances over Rs. 10 lakh and up to Rs. 10 Crores, 7.25% will be paid. 6.50% would be paid on incremental balances above Rs. 50 crores. The rates are effective from February 15, 2023.

According to the Jana SFB, “Interest is calculated on day-end balances maintained in the savings account 2. The interest is paid / credited to savings account on quarterly basis.”

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Unity Small Finance Bank

Unity SFB, the bank offers 6% on savings account balances up to Rs 1 lakh and 7% on balances above Rs 1 lakh.

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Shivalik Small Finance Bank

Shivalik SFB offers interest rate of 3.50% on balance upto Rs 10 lakh. For savings account balances above Rs 10 lakhs to Rs 50 lakhs. For balances above Rs 50 lakh to Rs 1 crore, the interest rate is 4.50% and 6% on balances above Rs 1 crore to Rs 2 crore. The rates are effective from January 20, 2023.

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As a financial expert with a keen understanding of banking products and interest rate structures, I can confidently provide insights into the concepts discussed in the article by Sneha Kulkarni on savings account interest rates. My expertise is grounded in a comprehensive understanding of financial markets, banking regulations, and the intricacies of interest rate mechanisms.

Firstly, it's crucial to recognize that savings account interest rates can vary based on the account balance and the specific policies of each bank. The article highlights six banks offering interest rates ranging from 3.50% to 7.50% on savings accounts. Let's delve into the key concepts and details mentioned in the article:

1. Ujjivan Small Finance Bank:

Interest Rates: Vary from 3.50% to 7.50% based on different balance slabs.
Calculation Basis: Interest is calculated on day-end balances and paid out quarterly.
Example: For a balance of Rs. 120,000, 3.50% interest on Rs. 100,000 and 6.00% on the remaining Rs. 20,000.

2. Equitas Small Finance Banks:

Interest Rates: Range from 3.50% to 7.00%.
Calculation Basis: Interest is computed on the daily closing balance and credited quarterly.
Incremental Slabs: Rates apply to incremental amounts based on the closing balance.

3. Jana Small Finance Banks:

Interest Rates: Vary from 3.50% to 7.25%, with different slabs for incremental balances.
Calculation Basis: Interest is calculated on day-end balances and credited quarterly.
High-Balance Rates: Lower interest rates apply to incremental balances above Rs. 50 crores.

4. Unity Small Finance Bank:

Interest Rates: 6% on balances up to Rs. 1 lakh and 7% on balances above Rs. 1 lakh.
No Quarterly Mention: The article doesn't explicitly state the frequency of interest crediting.

5. Shivalik Small Finance Bank:

Interest Rates: Range from 3.50% to 6.00% for different balance slabs.
Effective Date: Rates are effective from January 20, 2023.
Incremental Rates: Higher balances yield higher interest rates.

In conclusion, this article provides a valuable overview of the interest rates offered by different small finance banks. Understanding the nuances of interest calculation, frequency of payouts, and the impact of balance slabs is essential for individuals seeking the most favorable savings account terms. As an expert in finance, I emphasize the importance of considering these factors when making decisions about where to hold savings.