Savings accounts are bank accounts that provide risk-free returns while still providing sufficient liquidity to manage your finances. Savings accounts are often used for short-term investments and to store funds in a safe location in case of an emergency. These accounts generate good returns but are not enough to keep up with inflation. In reality, investors should be aware that interest generated on all savings bank accounts up to ₹10,000 is tax-free under Section 80TTA of the Income Tax Act. As inflation continues to rise, opening a savings account with the highest possible interest rates would be a sensible move for your financial health. As a consequence, here are the seven DICGC insured savings accounts now giving the highest interest rate of 7% in the country.
Ujjivan Small Finance Bank
Ujjivan Small Finance Bank is offering a maximum interest rate of 7% on savings bank deposits of more than Rs. 5 lakh and up to Rs. 1 crore starting May 19, 2022.
| Amount | Interest Rate (p.a.) |
| Up to 1 lakh | 3.50% |
| Above Rs. 1 lakh upto Rs. 5 lakh | 6.00% |
| Above Rs. 5 lakh upto 1 Crore | 7.00% |
| Above Rs. 1 Crore and upto Rs. 10 Crore | 6.00% |
| Above Rs. 10 Crore | 6.75% |
Jana Small Finance Bank
The bank is now providing savings account holders with a maximum rate of 7% on savings bank deposits of more than 1 lakh and up to 50 lakhs, effective March 4, 2022. According to Jana Small Finance Bank, for incremental balances exceeding Rs. 1 lac and up to Rs. 50 lacs, a 7.00 per cent interest rate would be granted.
| Savings Account Balance | Interest Rate Per Annum |
| Upto 1 lakh | 4.50% |
| More than 1 lakh and Upto 50 Lakhs | 7.00% |
| More than 50 Lakhs and Upto 50 Crores | 6.50% |
| More than Rs. 50 Crores | 6.50% |
Equitas Small Finance Bank
Equitas Small Finance Bank is giving a maximum interest rate of 7% on savings bank deposits of above ₹5 lakhs and up to ₹2 crores as of March 21, 2022.
| Daily Closing Balance | Rate Slab |
| Up to ₹ 1 lakh | 3.50% |
| Above ₹ 1 lakhand upto ₹ 5 lakhs | 6.00% |
| Above ₹ 5 lakhs and upto ₹ 2 crores | 7.00% |
| Above ₹ 2 crores | 5.50% |
AU Small Finance Bank
AU Small Finance Bank is giving a maximum interest rate of 7.00 per cent on savings account balances between INR 25 lacs and less than INR 1 crore, as per the applicable interest rates on savings bank deposits w.e.f. 5th October 2021.
| Savings Account Incremental Amount slab | Rate of Interest Applicable (per annum) |
| Balances less than INR 1 Lac | 3.50% |
| Balances from INR 1 Lac to less than INR 10 Lacs | 5.00% |
| Balances from INR 10 Lacs to less than INR 25 Lacs | 6.00% |
| Balances from INR 25 Lacs to less than INR 1 Crore | 7.00% |
| Balances from INR 1 Crore to less than INR 10 Crores | 6.00% |
Fincare Small Finance Bank
The bank is guaranteeing a 7% interest rate on savings account balances above ₹5 lac and up to ₹1 crore, commencing July 1, 2021.
| Savings Account Slab In Rs | Interest rate in % p.a. |
| Up to and including ₹1 lakh | 4.50% |
| Above 1 lakh & including 5 lakh | 6.00% |
| Above 5 lakh & including 1 Cr | 7.00% |
| Above 1 Cr & including 2 Cr | 6.00% |
| Above 2 Cr & including 5 Cr | 5.75% |
| Above 5 Cr & including 15 Cr | 4.50% |
| Above 15 Cr & including 20 Cr | 4.00% |
| Above 20 Cr & including 30 Cr | 3.25% |
| Above 30 Cr & including 50 Cr | 3.00% |
| Above 50 Cr | 3.00% |
Utkarsh Small Finance Bank
The bank promises a maximum interest rate of 7% on incremental balances above ₹25 lakhs held in a savings account starting March 1, 2022.
| Balance inRs | Rate of Interest w.e.f March01, 2022 |
| Balance Upto1Lakh | 3.75% p.a. |
| Incremental balance above1 Lakh upto25 Lakhs | 6.50% p.a. |
| Incremental Balance above25 Lakhs | 7.00% p.a. |
Shivalik Small Finance Bank
The bank is providing a maximum interest rate of 7.00 per cent on savings account balances of above 2 crore to 7 crore and above as of May 27th, 2022.
| SAVING BANK ACCOUNTS | RATE OF INTEREST (%p.a.) |
| Balance upto 1 Lac | 3.50% |
| Above 1 Lac to 5 Lacs | 3.50% |
| Above 5 Lacs to 10 Lacs | 3.50% |
| Above 10 Lacs to 25 Lacs | 4.00% |
| Above 25 Lacs to 50 Lacs | 4.00% |
| Above 50 Lacs to 1 Crore | 4.50% |
| Above 1 Crore to 2 Crore | 5.00% |
| Above 2 Crore to 5 Crore | 7.00% |
| Above 5 Crore to 7 Crore | 7.00% |
| 7 Crore and above | 7.00% |
Source: Bank Websites
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ABOUT THE AUTHOR
Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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Published: 29 May 2022, 08:56 AM IST
