- Date : 09/12/2022
- Read: 3 mins
Savings accounts with 7.5% interest post-RBI’s rate hike
The Reserve Bank of India (RBI) has been on a rate hike spree ever since May 2022. The reason behind repeated rate hikes is rising inflation. To curb the inflationary trend, RBI has been increasing the repo rates making loans dearer.
Since May 2022, RBI has increased the repo rate five consecutive times. The repo rate has been increased by an aggregate of 225 basis points, or 2.25%. The current rate stands at 6.25%, and RBI has kept the door open for further rate hikes if inflation does not cool down.
While the rate hike makes loans dearer, deposits are more attractive. As repo rates increase, many banks and financial institutions have enhanced their deposit rates, especially savings accounts.
So, if you have surplus funds at your disposal that you want to keep liquid, you can choose from these financial institutions for higher interest earnings on your deposits. Have a look at some of the accounts which boast of high interest rates –
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An interest rate of 7.5%
A small finance bank leads the race in the 7.5% interest rate category. Ujjivan Small Finance Bank offers interest rates up to 7.5% on its savings accounts, one of the highest rates in the category.
An interest rate of 7%
Three banks offer such returns if you want an interest rate of 7%. Have a look –
- AU Small Finance Bank
The bank offers 7% interest on savings accounts and requires you to maintain an average monthly balance of Rs.2000 to Rs.5000, depending on your chosen account.
- Equitas Small Finance Bank
Another small finance bank, Equitas, also offers a 7% interest on the savings account. It requires an average monthly balance ranging from Rs.2500 to Rs.10,000, depending on which account you choose to open.
- DCB Bank
A private player, DCB Bank offers savings accounts with up to 7% interest. The minimum average monthly balance ranges from Rs.2500 to Rs.5000.
An interest rate of 6.5%
Three private sector banks offer up to 6.5% interest on their savings accounts.
- Bandhan Bank
Bandhan Bank requires an average monthly balance of Rs.2500 to Rs.5000 across different savings accounts and offers interest of up to 6.5%.
- CSB Bank
CSB Bank also offers an interest of 6.5% with a monthly balance requirement ranging from Rs.2500 to Rs.5000.
- RBL Bank
RBL Bank also requires you to maintain Rs.2500 to Rs.5000 monthly in its savings accounts and offers interest of 6.5%.
An interest of 6%
Lastly, two banks offer up to 6% interest on their savings accounts.
- IndusInd Bank
You can earn up to 6% interest on the different savings accounts offered by the bank. The average monthly balance requirement starts from Rs.1500 and goes up to Rs.10,000 for premium accounts.
- South Indian Bank
The bank also offers savings accounts with interest going up to 6%. The minimum balance requirement is low and ranges from Rs.1000 to Rs.2500.
So, choose from these banks and earn higher interest on your savings account balance.
Related - Find out how the repo rate hike will affect your home loans
