Savings accounts in these banks earn up to 7% interest, check details here

Small finance and payments banks are making waves by offering higher interest rates on savings accounts. These agile institutions, armed with low-cost, high-tech-enabled business models, are changing the game for savers. As individuals embark on their professional journeys, understanding the significance of savings accounts is crucial. A savings account serves as a powerful tool for managing finances and planning for the future. It offers a secure space to accumulate funds, build an emergency fund, and save for short-term goals or larger milestones such as higher education, homeownership, or entrepreneurship. 

Benefits that come with a savings account-:

• A savings account provides a secure way to save money.
• Depositing and withdrawing money is simple and hassle-free.
• Carrying cash is not necessary, which reduces the risk of theft.
• Having a savings account is required to avail government scheme benefits and subsidies.
• Savings accounts can be used for day-to-day and travel purchases, with access to discounts and offers.
• Savings accounts enable digital payment methods like NEFT, UPI, IMPS, RTGS, and internet banking.
• Convenient money transfer options make managing payments easy.
• Savings accounts keep a record of transactions for better financial management.

Higher interest rates on savings accounts are of the utmost importance for individuals because-:

• They allow for maximizing returns and beating inflation.
• Higher rates enable faster growth of savings and ensure financial security.
• Competitive interest rates provide flexibility, encourage saving habits, and enable diversification of investment portfolios.
• Choosing accounts with higher rates helps individuals achieve their financial goals effectively.

By leveraging their effective digital platforms and efficient operations, small finance banks have disrupted the traditional banking sector. By offering rates that are higher than those of commercial banks, these banks have upended the traditional banking industry with an emphasis on giving customers a better value. With their customer-centric approach and attractive interest rates, small finance banks are revolutionizing the way individuals save and manage their finances.

Small Finance Banks Leading the Charge:

Airtel Payments Bank:

With its fully digital and paperless banking experience, Airtel Payments Bank sets the bar high by offering an impressive 7 per cent interest rate on savings account balances between Rs 1 lakh –  Rs 2 lakhs. This customer-centric approach aims to provide a safe, simple, and rewarding banking experience.

ESAF Small Finance Bank:

ESAF Small Finance Bank understands the needs of savers with different balances. They offer an attractive interest rate of 4 per cent on smaller balances up to Rs 5 lakh. For those with higher savings, the bank offers an alluring 6.5 per cent interest rate on balances above Rs 15 lakhs.

Equitas Small Finance Bank:

Equitas Small Finance Bank takes a personalized approach by tailoring interest rates based on savings tiers. Customers can earn a competitive 3.5 per cent interest rate on balances up to Rs 1 lakh, 5.25 per cent on balances between Rs 1 to  Rs 5 lakhs, and an impressive 7 per cent interest on balances above Rs 5 lakhs.

Fincare Small Finance Bank:

Fincare Small Finance Bank rewards savers with its enticing interest rates. Customers can enjoy a remarkable 7.11 per cent interest rate on savings account balances upwards of Rs 5 lakhs and 6.11 per cent on balances between Rs 1 – Rs 5 lakhs. These rates make Fincare Small Finance Bank a formidable choice for individuals looking to maximize their savings.

Suryoday Small Finance Bank:

Suryoday Small Finance Bank aims to foster growth by offering competitive interest rates. Savers can earn a great interest rate of 7.00 per cent on balances upwards of  Rs 5 lakhs and 6.75 per cent on balances above Rs 1 lakh up to & including Rs 5 lakhs. With these attractive returns, Suryoday Small Finance Bank paves the way for financial success.