These banks are offering 7% interest on savings accounts, an opportunity to make big money on savings!

These banks are getting higher interest on savings accounts than most large banks.

Among these banks, savings accounts are earning higher interest rates than many large banks.

At a recent credit policy meeting, the RBI decided not to change the policy interest rate. Savings account and FD holders have got some relief in such a situation. Some banks are still offering better rates than major public and private sector banks.

  • News18
  • Last updated:
    December 14, 2020, 12:23 pm IST

New Delhi. Interest rates on bank savings accounts and term deposits (FDs) depend on monetary policy such as repo rate, base rate, financial position of the Reserve Bank (RBI). In making these decisions, the RBI takes into account the liquidity position of banks and credit demand. At its monetary policy meeting in December, the RBI decided to keep the policy interest rate at only 4 per cent. In such a scenario, savings account and FD holders are relieved that there will be no reduction in the current interest rate. Most people have savings accounts in banks. In such a scenario there are some small and new private banks that are offering higher interest on savings accounts than other banks.

Good interest rates in small private banks

The data collected from the bank’s market shows that some of the newer banks, such as Bandhan Bank and IDFC Bank, are earning interest rates on savings accounts at 7.15 per cent and per cent, respectively. These interest rates are somewhat better than those of small finance banks. For example, AU Small Finance Bank and Ujjivan Small Finance Bank are earning 7% and 6.5% interest on savings accounts, respectively.

Read also: SBI gift to senior citizens, now they will get the highest saving opportunity till March!Low interest rates in major public and private sector banks

In comparison, large public and private sector banks have lower interest rates on savings accounts. Private sector HDFC Bank (HDFC Bank) and ICICI Bank (ICICI Bank) are offering interest rates at 3 and 3.5 per cent, respectively. The interest rate is 2.70 per cent in the public sector State Bank of India (SBI) and 2.75 per cent in Bank of Baroda (BOB).

Obligation to maintain a minimum balance

The minimum balance in a private bank savings account ranges from 500 to 10,000. This is more often the case than public sector banks. The minimum mandatory balance between IDFC Bank and the bond is Rs 10,000 and Rs 5,000 respectively. In fact, the target of private banks is consumer salaried middle class and self-employed people. The major private banks of Axis Bank and HDFC Bank have up to Rs 2,500 and Rs 10,000 respectively.

Also read: Good news! 8.5 million interest will be credited to the crore crore PF account by the end of this month

Generally people advise experts to choose the same bank, which has more track record, has better service, its branch network and ATM service should also be better. If a bank gets a good interest rate, it will be considered better.