These banks offer up to 7% interest rate. Details here

The savings account is a safe place where you can set aside a portion of your income for emergencies in the near future. An added benefit of the savings account is that we receive interest on our money. It is very beneficial for people who work with regular monthly income. At any time, money can be transferred in or out of your online savings account.

Here is a list of some small finance banks that offer high interest rates on savings accounts:

AU Small Finance Bank

The AU’s Small Finance Bank offers seven percent interest on the savings account. The income slab should be between Rs 25 lakh and Rs 1 crore.

Fincare Small Financial Bank

Fincare Small Finance Bank offers a seven percent interest rate on the savings account. The income slab should be between Rs 5 lakh and 1 crore. You must maintain an average monthly balance of Rs 1,000 for this bank.

Small Ujjivan Financial Bank

Ujjivan Small Finance Bank offers an interest rate of 6.50 percent on deposits below Rs2 crore. The occupancy period must be 1 year.

Small Equitas Financial Bank

On the income bracket between Rs 5 and 50 lakh, Equitas Small Finance Bank offers an interest rate of seven percent Rs 2,500 to Rs 10,000 is the average balance required in this bank.

Suryoday Small Finance Bank

The required monthly balance for this bank is 2,000 rupees. Interest rates of 6.25% are offered on the Suryoday Small Finance Bank savings account.

The main motive behind the establishment of small financial banks is to extend the reach of banking services to the poverty stricken sections of society. The minimum released share capital required to create a small financing bank is Rs 200 crore. It was Rs 100 crore initially. Some of the basic goals behind the establishment of small finance banks are to provide credit to small business units, small farmers and marginal farmers. They also provide credit to micro and small industries and other entities in the unorganized sector, through high tech and low cost operations.

Read all the latest news, breaking news and news on the coronavirus here.

Stephen V. Lee