The savings account interest rates vary depending on the bank and the balance in the account. Certain banks offer their savings account holders additional interest payments. However, some banks offer savings account interest rates between 5%-8% depending on the account balance. For example, DCB Bank offers interest of up to 8% on savings accounts ranging from ₹10 Crores to less than ₹2 Crores and 7.25% interest on savings account balances ranging from ₹50 Crores to less than ₹2 Crores in the account. Similarly, IDFC FIRST Bank offers interest rates of up to 7% on balances of more than ₹ 10 lakh to less than ₹5 crore.
However, most people do not keep a balance in crores in their savings accounts. Common people whose earnings are low have savings account balances ranging between ₹1 lakh to ₹5 lakhs. Considering this, it is best to put your hard-earned money in a savings account that offers high-interest rates on balances ranging up to ₹1 lakh and between ₹1 and ₹5 lakhs.
Here are banks offering the highest savings account interest rates on deposits up to ₹1 lakh.
Unity Small Finance Bank
Unity Small Finance Bank offers attractive interest rates to retail customers, with an interest rate of 6% p.a. for deposits of up to ₹1 lakh. The bank offers 7% p.a. interest for deposits ranging from ₹1 lakh to above ₹5 lacs, 7.25% interest for deposits ranging from ₹5 lakhs to above ₹20 lakh crore, 7.50% interest for deposits ranging from ₹20 lakh to above ₹5 crores and 7.75% interest for deposits ₹5 crores and above.
RBL Bank
RBL Bank is the second bank on the list that offers the highest interest rates on savings account balances on deposits up to ₹1 lakh. The bank offers to provide interest rates of 4.25% on balances up to ₹1 lakh, the highest among private banks (excluding small finance banks). For the balance above ₹1 lakh up to Rs 10 lakh, the bank offers 5.50% interest rates. The interest rates offered by the bank on savings accounts range from 4.25% to 7.50%. Interest rates are effective from August 21, 2023, according to the bank.
Visit rblbank.com for full interest rates offered by the bank on the increment balance.
Utkarsh Small Finance Bank (USFB)
USFB is the second small finance bank on the list that offers the highest interest rates on the balance of up to ₹1 lakh with 4% interest rates. The bank offers 6.25% interest on balances ranging between ₹1 lakh upto ₹5 lakh.
The bank offers interest rates on savings deposits ranging from 4% to 7.75%. The interest rates depend on the increment balance in the savings account. The Interest rates are effective February 1, 2024.
Visit utkarsh.bank to know the interest rates on increment balances above Rs 5 lakh.
North East Small Finance Bank (NESFB)
NESFB is 4th bank on the list, offering the highest interest rates of on deposits up to ₹1 lakh. The bank offers 5% interest rates on the balance above Rs 5 lakh upto ₹25 lakh.
According to the bank, the interest rates range from 4% to 6% on the daily balance, depending upon the balance. Visit nesfb.com for further information about the interest rates offered by the bank.
Recently, the bank has been in the news for the merger. The Competition Commission of India (CCI) approved the merger of Slice, a Bengaluru-based credit and payments startup, with NESFB.
You Should Know!
Savings account interest rates vary widely depending on the bank and the balance in the account. If you are not considering fixed deposit investments due to their premature withdrawal rules, as you may need the money anytime, you can consider keeping your money in a savings account. The best high-yield savings accounts earn competitive interest rates, come with no fees and address your needs. The best account depends on your banking needs, which can vary from person to person. Savings account rates are subject to change and may vary depending on the bank’s policies and the customer’s account balance.
Disclaimer: The above content has been made for educational purposes only. Please do consult your financial advisor before making any financial decisions. Check the latest rates on the banks’ official websites or contact them directly for the most up-to-date information.