Do You Know: These banks offer higher interest rate than FD on savings account

Small private banks and small finance banks are offering higher interest rates on savings account FDs as compared to some private banks.

After the Reserve Bank of India hiked the repo rate from 4 per cent to 6.50 per cent last fiscal, many banks hiked interest rates on savings accounts.

Small private banks and small finance banks offer 8 percent interest on savings accounts, which is higher than large private banks.

DCB Bank is offering up to 8 percent interest on savings accounts. This bank offers the best interest rates among private banks. Customers can maintain a minimum balance of Rs 2,500 to Rs 5,000 in the savings account of this bank.

Ujjivan Small Finance Bank is offering up to 7.5% interest on savings account. This bank offers the best interest rates among small finance banks.

Federal Bank is offering 7.15 percent interest on savings account. Minimum limit to maintain balance is Rs. 5,000 is required .

DBS Bank offers 7 percent interest on savings accounts. This bank offers the best interest rates among foreign banks. 10,000 to Rs. Average quarterly balance up to 25,000 is required.

AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering up to 7% interest on savings account. The average monthly balance requirement is 2,000 to 5,000 2,500 to 10,000 and 2,000 respectively.

IDFC First Bank and RBL Bank are offering up to 7% interest on savings accounts. Average monthly balance requirement respectively Rs. 10,000 and 2,500 to 5,000 .

To attract new retail customers, small private banks and small finance banks are offering higher interest rates on savings accounts than large private and public sector banks.

You should choose a bank with long track record, good service standards, wide branch network and ATM services in cities. Higher interest on savings accounts will be a bonus.