MUMBAI: Some small financial banks offer high interest rates on savings accounts, which are higher than the fixed deposit rates of most banks. But these come with conditions.
Take the example of Utkarsh Small Finance Bank. Customers can get interest rates between 5% and 7.25%, according to data from Paisabazaar.com.
The 5% interest rates are for the 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 offered to those who maintain a balance greater than ??25 lakh.
The minimum average quarterly balance (AQB) varies by account. For the Standard Savings Account and the 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 extremely high balances for these rates.
For its Digital Savings Account, RBL Bank requires customers to maintain a balance between ??3 crores and ??5 crore to qualify for the highest rate – 6.5%, according to its website. Sale up to ??1 lakh gets 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 more than ??50 crore, according to its website. Customers who maintain a daily balance below ??1 lakh gets an interest rate of 3%, and those with a balance between ??1 lakh and ??10 crore, get 6%.
IDFC First Bank, on the other hand, offers an interest rate of 6% for balances up to ??1 crore. For larger amounts, the interest rates are lower. Included between ??1 crore and ??5 crore, the bank offers a rate of 5%, according to its website.
Among public sector banks, IDBI Bank and Punjab National Bank offer 3.5% higher interest rates for amounts greater than ??50 lakh and ??100 crores, respectively.
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