Fincare Small Finance Bank hikes interest on savings account to 7.5%

Fincare Small Finance Bank is now offering a 7.5 per cent interest rate on its savings deposits, one of the highest among banks in India. The small finance bank increased savings account interest rates by 25 basis points on Friday.

"At Fincare Small Finance Bank, we continually strive to redefine the banking experience for our customers. The introduction of a 7.5 per cent interest rate on savings accounts is a significant step in that direction," said Rajeev Yadav, MD and CEO of Fincare Small Finance Bank. 

With the latest hike, the quarterly payout for incremental balance above Rs 5 lakh to Rs 10 crore will be 7.50 per cent. Previously, only incremental balance above Rs 50 lakh to Rs 10 crore attracted a 7.50 per cent interest rate. The new interest rate will be applicable from December 1, 2023.

 

The interest rates on savings accounts of Fincare Small Finance Bank range from 3.51 per cent to 7.50 per cent. 

While public sector banks offer interest rates on savings deposits ranging from around 2.70 per cent to four per cent, private banks, small finance banks, offer interest rates as high as 7.5 per cent.

In October, it was reported that the Reserve Bank of India (RBI) is nudging banks to raise interest rates on savings deposits to pass on the benefits of higher interest rates.  .

Here are the latest interest rates some leading banks are offering:   

1. SBI: 2.7 per cent per annum on balance below Rs 10 crore, 3 per cent on balance above Rs 10 crore. 
2. HDFC Bank: 3 per cent on balance below Rs 50 lakh, 3.5 per cent on balance above Rs 50 lakh. 
3. ICICI Bank: 3 per cent on balance below Rs 50 lakh, 3.5 per cent on balance above Rs 50 lakh. 
4. IDFC Bank: 7 per cent on balance between Rs 5 lakh to Rs 25 crore.
5. Ujjivan Small Finance Bank: 7.5 per cent interest on balance above Rs 5 lakh.
6. Utkarsh Small Finance Bank: 7.5 per cent on incremental balance between Rs 5 lakh to Rs 50 lakh