6 banks offer up to 8% interest rates on savings accounts; check full list here
Emergency fund: A sufficient emergency reserve kept in a savings account serves as a financial safety net for unforeseen costs such as job loss, medical emergencies, or sudden repairs. Strive to accumulate at least three to six months’ worth of living expenses in an easily accessible account. Ease of access: Savings accounts provide convenient access to your funds through ATMs, online transfers, or debit cards.
This enables you to address immediate financial requirements without resorting to tapping into investments or seeking loans. Interest earnings: Although interest rates on savings accounts might not be as substantial as those offered by other investment avenues, they still facilitate gradual growth for your money, acting as a safeguard against the impact of inflation over time. Peace of mind: Having a financial cushion in place can mitigate stress and anxiety in times of uncertainty.
It enables you to make decisions calmly and confidently, assured that you possess the resources to confront challenges. After the Reserve Bank of India (RBI) decided to hike the repo rate, there has been a notable transformation in the realm of savings account interest rates in India. Smaller private banks and small finance banks have taken the lead, providing interest rates reaching up to eight per cent, in contrast to the comparatively modest rates offered by major private banks.
Some of them include: DCB Bank: This bank provides interest rates of up to eight per cent on savings accounts, making it the top choice among private banks in terms of interest rates. The minimum balance requirement ranges from ₹2,500 to ₹5,000. Ujjivan Small Finance Bank: This bank provides competitive interest rates for savings accounts, reaching up to
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