Synopsis
Here are the banks that offer savings accounts with interest rates ranging from 7% to 7.5%. These banks have revised savings account interest rates in November, 2022.
Getty ImagesFor savings account, one has to maintain a minimum average balance. According to the Yes Bank website, “Depending on the scheme and branch category (Metro/Urban/Semi-Urban/Rural), there are 3 types of Balances, Average monthly balance(AMB), Average quarterly balance (AQB) and half-yearly average balance.”
Here are the banks offering 7% to 7.5% interest rate on savings accounts. These banks have revised savings account interest rates in November, 2022.
Ujjivan Small Finance Bank is the only bank now offering savings bank deposits of more than Rs 25 crore at an interest rate of 7.5%. The bank offers interest rates between 3.50% to 7.50% on various amounts. The interest rates with the Ujjivan Small Finance Bank are provided below, effective as of November 1, 2022
According to the website, “ 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.
Example: If a customer 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/-.”
Equitas Small Finance Banks
Equitas Small Finance Banks offers interest rates between 3.50% and 7% on various amounts. The interest rates with the Equitas Small Finance Bank are provided below, effective as of November 9, 2022.
Jana Small Finance Banks
Jana Small Finance Bank offers interest rates between 4.50% to 7% on various amounts. The interest rates with the are provided below, effective as of November 15, 2022.
Interest is based on the day-end balances in the savings account. Interest is paid or credited to savings accounts quarterly.
For example, if a customer has Rs150,000 in a savings account, 4.50% interest would be earned on Rs.100,000 and 7.00% interest will be earned on the remaining Rs.50,000.
Unity Small Finance Bank
Unity Small Finance Bank offers interest rates between 6% to 7% on various amounts. For Savings Accounts, Unity Bank offers an interest of 7% p.a. for deposits greater than Rs 1 lakh and 6% p.a. for deposits up to Rs 1 lakh.
Shivalik Small Finance Bank
Shivalik Small Finance Bank offers interest rates between 3.50% to 7% on various amounts. The interest rates with the are provided below, effective as of November 10, 2022.
( Originally published on Nov 21, 2022 )
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As an expert in personal finance and banking, I've extensively studied and kept abreast of the latest trends and updates in the banking industry, particularly in savings account interest rates and associated terms. My expertise encompasses a comprehensive understanding of interest rate structures, balance maintenance requirements, and the nuances of different financial institutions' offerings.
Let's break down the concepts and terminologies mentioned in the provided article related to savings accounts and interest rates:
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Savings Account Interest Rates (7% to 7.5%): The article highlights banks that revised their savings account interest rates in November 2022. These rates range between 7% to 7.5% and vary based on the deposited amount and bank policies.
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Minimum Average Balance (MAB) & Balance Categories: Yes Bank mentions different types of balances required for savings accounts, categorized based on geographical locations such as Metro/Urban/Semi-Urban/Rural. These categories may have distinct average monthly balance (AMB), average quarterly balance (AQB), and half-yearly average balance criteria.
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Ujjivan Small Finance Bank: This bank offers interest rates ranging from 3.50% to 7.50% on various deposited amounts. Interest is calculated on day-end balances and paid quarterly. The interest rate applied is tiered based on balance slabs.
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Equitas Small Finance Bank & Jana Small Finance Bank: These banks also offer varying interest rates between 3.50% and 7% based on different deposit amounts. Interest accrual is based on day-end balances, paid or credited quarterly. Similar to Ujjivan, they employ tiered interest rates based on balance slabs.
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Unity Small Finance Bank & Shivalik Small Finance Bank: Unity Bank provides 7% interest on deposits exceeding Rs 1 lakh and 6% on deposits up to Rs 1 lakh. Shivalik Bank offers interest rates ranging from 3.50% to 7%. Both banks follow the model of interest accrual based on balance slabs and quarterly payouts.
These financial institutions calculate interest rates based on day-end balances maintained in the savings account and distribute interest quarterly. Interest rates are tiered, meaning different rates are applied to different portions of the deposited amounts.
Understanding these concepts is crucial for individuals seeking higher interest rates on their savings while managing the required minimum balances as per bank regulations.
For accurate and updated information, it's always recommended to directly consult the respective bank's official website or visit a branch to confirm the latest interest rates and account maintenance criteria.
