These savings accounts offer better returns than select fixed deposits

Updated : December 29, 2020 10:36:48 IST

When it comes to investing, fixed deposits or FDs are one of the most popular schemes because of their risk-free nature.

The interest rates offered on FDs are subject to change from time to time, which also varies from banks to banks.

When it comes to investing, fixed deposits or FDs are one of the most popular schemes because of their risk-free nature. The interest rates offered on FDs are subject to change from time to time, which also varies from banks to banks.

However, several banks have reduced their FD rates lately, which has left investors concerned. The cuts have been so deep that in many cases they appear to be at par with the savings account interest rates offered by other banks.

Major banks such as State Bank of India (SBI), ICICI Bank and HDFC Bank currently offer FDs in the range of 2.5 percent-5.5 percent for similar tenures for the general public.

SBI, for example, offers an interest rate of 4.9 percent on FDs of up to Rs 2 crore for 1 year. On the same tenure and amount, HDFC Bank and ICICI Bank also offer an interest rate of 4.9 percent.

Meanwhile, some small finance banks offer higher interest rates on savings accounts themselves.

Here are some of them:

Utkarsh small finance bank

Utkarsh small finance bank offers the following interest rates on deposits:

Balance	Interest rates
Balance up to 1 lakh	5%
Incremental balance above Rs 1 lakh to Rs 25 lakh	6%
Incremental balance above Rs 25 lakh	7.25%

Jana small finance bank

Jana small finance bank offers the following interest rates on deposits:

Deposits	Interest rates
> 0 and up to Rs 1 lakh	4%
More than Rs 1 lakh and up to Rs 10 lakh	5%
More than Rs 10 lakh and up to Rs 5 crore	7.00%
More than Rs 5 crore	7.25%

AU small finance banks

AU small finance bank offers the following rates on deposits:

Savings Account Incremental Amount slab	Interest rates
Balances less than Rs 1 lakh	4.00%
Balances from Rs 1 lakh to less than Rs 5 lakh	5.00%
Balances from Rs 5 lakh to less than Rs 10 lakh	6.00%
Balances from Rs 10 lakh to less than Rs 5 crore	7.00%

Published : December 29, 2020 10:36 AM IST

These savings accounts offer better returns than select fixed deposits

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