These banks are giving 7% interest on savings account, a chance to earn big money on savings!

These banks are getting more interest on savings account than many major banks.

Savings accounts are getting more interest in these banks than many major banks.

In the recent monetary policy meeting, the RBI has decided not to change the policy interest rates. In such a situation, the savings account and FD holders have got some relief. Some banks are still paying better rates than major public and private sector banks.

  • News18No
  • Last Updated:
    December 14, 2020, 12:23 PM IS

new Delhi. The interest rate on Savings Account and Fixed Deposit (FD) of banks depends on monetary policy like Reserve Bank (RBI) repo rate, base rate, economic condition. While taking these decisions, RBI also takes care about liquidity position of banks and credit demand etc. In the Monetary Policy meeting of December, the RBI has decided to keep the policy interest rate at 4 percent only. In such a situation, there is a slight relief to the savings account and FD holders that there will be no decline in interest rates for the present. Most people have a savings account in banks. In such a situation there are some small and new private banks which are paying more interest on savings account than other banks.

Better interest rate in small private banks

Data collected by the bank market shows that there are some new banks like Bandhan Bank and IDFC Bank, where the savings account is getting interest at the rate of 7.15 per cent and 7 per cent respectively. These interest rates are somewhat better than small finance banks. For example, AU Small Finance Bank and Ujjivan Small Finance Bank are getting 7% and 6.5% interest on savings account respectively.

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In comparison to this, when talking about major public and private sector banks, there is less interest on savings account here. Private sector HDFC Bank (HDFC Bank) and ICICI Bank (ICICI Bank) are paying interest at the rate of 3 and 3.5 percent respectively. Whereas, in the public sector State Bank of India (SBI) this interest rate is 2.70 per cent and in Bank of Baroda (BoB) is 2.75 per cent.

Obligation to maintain minimum balance

The requirement of minimum balance in the savings account of private banks ranges from Rs 500 to Rs 10,000. This is much more than public sector banks. The minimum mandatory balance in IDFC Bank and Bandhan is at Rs 10,000 and Rs 5,000 respectively. Actually, the target customers of private banks are salaried middle class and self-employed people. It is up to Rs 2,500 and Rs 10,000 in major private banks from Axis Bank and HDFC Bank respectively.

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Generally people experts advise people to choose the same bank, which has better track record, better service, its branch network and ATM services should also be better. If a bank is getting a better interest rate then it is considered even better.