There are very few financial products in the market that come with a dual benefit of interest and liquidity for account holders. Savings account is one such product that allows you to transfer and withdraw money from your account at your will and also earn interest on your balance on a regular basis.
Savings account is a perfect option for salaried individuals as they keep using the money in their accounts to meet several monthly expenses and also earn interest on the balance amount periodically. Most banks credit the interest amount in savings accounts on a quarterly basis. Interest rates on savings accounts vary bank to bank.
Before you open a savings account, you must compare the interest rates and other important benefits offered by various banks. While a savings account might not be as popular as other savings and investments options like fixed deposits and recurring deposits, it does help you meet your short-term financial goals. Banks these days offer different kinds of savings accounts customised as per requirements of kids, housewives, pensioners, etc.
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Small finance banks usually offer better interest rates on savings accounts than large banks. The interest rates also depend on the amount of savings in an account. Take a look at the best savings account interest rates offered by these 7 small finance banks for deposits of more than Rs 5 lakh, based on the latest data from Paisabazzar.com.
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DCB Bank savings account interest rates
This private sector lender is offering an interest rate of 8% for savings account customers maintaining balances ranging from Rs 10 lakh to Rs 2 crore. On deposits ranging Rs 5 lakh to Rs 10 lakh, the bank’s interest rate is 5.25%.
Ujjivan Small Finance Bank savings account interest rates
Ujjivan Small Finance Bank offers a 7.5% interest rate for savings account customers maintaining balances above Rs 5 lakh.
Fincare Small Finance Bank savings account interest rates
Fincare Small Finance Bank offers 7.5% interest on savings accounts with balances ranging from Rs 5 lakh to Rs 2 crore.
ESAF Small Finance Bank savings account interest rates
ESAF Small Finance Bank is offering interest rate of 7.5% Above Rs.5 lakhs (i.e. for incremental amount above Rs.5 lakhs)
RBL Bank savings account interest rates
RBL Bank is offering an interest rate of 7.5% on deposits ranging Rs 25 lakh and up to Rs 2 crore. On deposits of Rs 1 lakh to Rs 10 lakh, the lender is offering an interest rate of 5.5%.
Suryoday Small Finance Bank savings account interest rates
The bank offers an interest of 7.5% on account balances ranging Rs 10 lakh up to and including Rs 2 crore. Its rates start at 7.25% for customers having deposits of more than Rs 5 lakh but less than Rs 10 lakh.
AU Small Finance Bank savings account interest rate
AU Small Finance Bank is offering 7% interest rate on savings account balances ranging Rs 25 lakh to Rs 1 crore.
Savings accounts interest taxation
Savings account interest falls under the heading “Income from Other Sources”, which needs to be filed in the Income Tax Return (ITR). It should be noted that interest from a savings account doesn’t get tax exemption advantage but it gets a deduction benefit. You are allowed to claim a deduction on interest incomes up to Rs 10, 000. The condition is that the savings account must be opened with a recognized bank or with the Post Office.
