Top 10 Banks With Higher Interest Rates On Savings Accounts

Savings accounts are essential in your portfolio if you intend to use the accrued savings for urgent or emergency requirements. The interest rates in savings accounts are low and are not inflation-beating, implying that investing in a savings account is not for generating significant wealth, long financial objectives, or a corpus of post-retirement days. During the current low-interest-rate regime there are some banks that are providing higher returns on savings accounts than interest rates of fixed deposits. However, fixed deposits require a lump-sum amount and do not allow you to make premature withdrawals. But on the other hand, a savings account offers you higher liquidity which means that you can withdraw your funds whenever required. Keeping the liquidity nature and interest rates in mind, here we have compiled the top 10 private, public and small finance banks that are currently promising higher interest rates on savings accounts and are also insured up to Rs 5 lakhs by DICGC.

Top 10 Private Sector Banks With Higher Interest On Savings Accounts

Among the private sector banks, RBL Bank followed by IndusInd Bank and Yes Bank is currently promising higher interest rates on savings accounts. Here are the top 10 banks which are providing the best returns on savings accounts.

Banks	Interest Rates	W.e.f.
RBL Bank	4.25% to 6.00%	July 2, 2021
Yes Bank	4.00% to 5.25%	13 May 2021
IndusInd Bank	4.00% to 5.50%	June 4, 2021
Kotak Mahindra Bank	3.5% to 4.00%	June 19, 2021
DCB Bank	3.00% to 6.75%	10th June, 2021
Bandhan Bank	3.00% to 6.00%	June 7, 2021
IDFC First Bank	3.00% to 5.00%	1.05.2021
DBS Bank	3.00% to 4.00%	12 February 2021
HDFC Bank	3.00% to 3.50%	11 June 2020
Axis Bank	3.00% to 3.50%	1st April 2021
Source: Bank Websites

Top 10 Public Sector Banks With Higher Interest Rates On Savings Accounts

Among the public sector banks, Punjab & Sind Bank followed by Indian Overseas Bank and IDBI Bank are currently promising higher interest rates on savings accounts. See the table below to check the interest rates on savings accounts provided by the top 10 leading commercial banks of India.

Banks	Interest Rates	W.e.f.
Punjab & Sind Bank	3.10%	12.11.2020
Indian Overseas Bank	3.05%	09.11.2020
IDBI Bank	3.00% to 3.35%	July 14, 2021
Punjab National Bank	3.00%	1st July 2021
Union Bank	3.00%	31.03.2020
Canara Bank	2.90% to 3.20%	28.09.2020
Bank of India	2.90%	01.10.2020
Indian Bank	2.90%	21.11.2020
Bank of Baroda	2.75% to 3.20%	26.05.2021
Central Bank of India	2.75% to 2.90%	10.04.2021
Source: Bank Websites

Top 10 Small Finance Bank Providing Higher Interest Rates On Savings Accounts

Currently, Utkarsh Small Finance Bank followed by Ujjivan Small Finance Bank is providing higher interest rates on savings accounts up to 7.00%. Here are the top 10 small finance banks promising the best interest rates on savings accounts.

Banks	Interest Rates	W.e.f.
Utkarsh Small Finance Bank	5.00% to 7.00%	July 1, 2021
Ujjivan Small Finance Bank	4.00% to 7.00%	6th March 2021
ESAF Small Finance Bank	4.00% to 6.50%	1st August 2020
North East Small Finance Bank	4.00% to 6.00%	1st March 2021
Suryoday Small Finance Bank	4.00 to 6.25%	June 1, 2020
AU Small Finance Bank	3.50% to 7.00%	17 May 2021
Equitas Small Finance Bank	3.50% to 7.00%	1st June 2021
Capital Small Finance Bank	3.50%	June 3, 2021
Fincare Small Finance Bank	3.00% to 7.00%	01 July 2021
Jana Small Finance Bank	3.00% to 6.75%	06.05.2021
Source: Bank Websites