What are small financial banks?
Small financial banks are a new type of bank established by the RBI with the assistance of the Government of India with the aim of promoting financial inclusion by primarily providing basic banking services to underserved and underrepresented groups. These banks can engage in all basic banking activities, such as lending and taking deposits, just like ordinary commercial banks.
Small financial banks offer higher interest rates than most private banks. Here is the latest interest rate on savings accounts offered by Equitas, AU Bank, Ujjivan Bank and Shivalik Small Finance Bank.
Equitas offers savings accounts with interest rates ranging from 3.50% to 7%. Interest will be calculated using the daily closing account balance. The bank makes quarterly interest payments by direct credit to the savings account. Note that slab rates are applicable on the incremental amount based on the closing balance.
AU Small Financial Bank
interest on savings accounts will be calculated daily and paid monthly, ie at the end of each month. The bank offers interest rates ranging from 3.50% to 7%.
Interest rates are applicable for existing additional balances that fall within the specified amount range.
Ujjivan Small Finance Bank
interest on savings accounts accrues on the end-of-day amounts held in the savings account and is distributed quarterly. The higher interest rate will only be applied and paid based on balances maintained in accordance with the slabs. The bank offers interest rates ranging from 3.50% to 7%.
According to the website, “Ex: If a client maintains Rs.120,000/- 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/-.â€
Shivalik Small Finance Bank
Shivalik Small Finance Bank interest is based on end-of-day savings account balances and paid quarterly. Interest is calculated on the basis of additional balance installments. The bank offers interest rates ranging from 3.50% to 7%.
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