What are Small Finance Banks?
Small finance banks are a new type of bank set up by the Reserve Bank of India with the assistance of the Government of India, with the aim of promoting financial inclusion by providing basic banking services, primarily to underserved and under-represented groups. These banks can engage in all basic banking activities, such as lending and accepting deposits, like regular commercial banks.
Small finance banks offer higher interest rates than most private banks. Here are the latest interest rates on savings accounts offered by Equitas, AU Bank, Ujjivan BankAnd Shivalik Small Finance Bank,
Equitas offers savings accounts with interest rates ranging from 3.50 percent to 7 percent. Interest will be calculated using the daily closing balance of the account. The bank makes quarterly interest payments by way of direct credit to the savings account. Note that the slab rates are applicable on the incremental amount based on the closing balance.
AU Small Finance Bank
Interest on savings accounts will be calculated daily and paid monthly, i.e. at the end of each month. The bank offers interest rates ranging from 3.50 percent to 7 percent.
Interest rates are applicable for existing incremental balances that fall within the specified amount slab.
Ujjivan Small Finance Bank
Interest on savings accounts accrues on the day-end amount held in the savings account and is disbursed quarterly. Higher interest rate will be applicable and paid only on the basis of balance maintained as per slab. The bank offers interest rates ranging from 3.50 percent to 7 percent.
As per the website, “Example: If a customer keeps Rs.120,000/- in a savings account, 3.50% interest will be earned for Rs.100,000/- and 6.00% interest will be earned for balance Rs.20,000/- . ”
Shivalik Small Finance Bank
Shivalik Small Finance Bank interest is based on day end balance in savings accounts and quarterly payments. The interest is calculated on the basis of incremental balance slab. The bank offers interest rates ranging from 3.50 percent to 7 percent.
