KEY STORY
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With repo rate falling to record low banks have been forced to cut interest rate on fixed deposits (FD), reducing their attractiveness in recent times.
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Leading public sector and private sector banks are now offering an interest rate between 2.5%-5.5% on their fixed deposits to the general public depending on the tenure of the deposit. For senior citizens, they are offering up to 6% interest on FDs.
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But some of the smaller private sector banks and small finance banks are still offering between 3% and 7.25% on their on there savings bank accounts provided a specific amount of average balance is maintained in the account.
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So savers have an opportunity to earn higher interest by parking their money in savings bank account rather than locking their money in FDs.
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Also, worth mentioning here is that interest amount earned from fixed deposits and savings account is taxable as per the tax slab of the depositor. However, as per Section 80TTA, a deduction of Rs 10,000 is offered in interest income earned from savings account.
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So the amount parked in a savings account of a small savings bank or a smaller private sector bank can potentially earn higher post-tax interest than the fixed deposit in a larger PSU and private sector bank.
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If you are planning to park some of your savings in high-yield savings accounts here are few options for you.
Private Sector Banks
United diagnosticss
IDFC First Bank Less than equal to Rs 1 lakh: 6%
Above Rs 1 lakh and up to Rs 10 crore: 7%
Above Rs 10 crore and upto Rs 50 crore: 4.5%
Above Rs 50 crore and up to Rs 100 crore: 4%
More than Rs 100 crore: 3.5%
RBL Bank
Less than equal to Rs 1 lakh: 4.75%
Above Rs 1 lakh and up to Rs 10 lakh: 6%
Above Rs 10 lakh and upto Rs 3 crore: 6.75%
Above Rs 3 crore and up to Rs 5 crore: 6.75%
Bandhan Bank
Less than equal to Rs 1 lakh: 3%
Above Rs 1 lakh and up to Rs 10 crore: 6%
Above Rs 10 crore and upto Rs 50 crore: 6.55%
Above Rs 50 crore: 7.15%
IndusInd Bank
Less than equal to Rs 1 lakh: 4%
Above Rs 1 lakh and up to Rs 10 lakh: 5%
Above Rs 10 lakh: 6%
Small Finance Banks
AU Small Finance Bank
Less than Rs 1 lakh: 4%
From Rs 1 lakh to less than Rs 5 lakh: 5%
From Rs 5 lakh to less than Rs 10 lakh: 6%
From Rs 10 lakh to less than Rs 5 crore: 7%
From Rs 5 crore to less than Rs 10 crore: 6.5%
Jana Small Finance Bank
Upto Rs 1 lakh: 4%
Above Rs 1 lakh and up to Rs 10 lakh: 5%
Above Rs 10 lakh and up to Rs 5 crore: 7%
Above Rs 5 crore: 7.25%
Utkarsh Small Finance Bank
Upto Rs 1 lakh: 5%
Above Rs 1 lakh and up to Rs 25 lakh: 6%
Above Rs 25 lakh: 7.25%
North East Small Finance Bank
Less than Rs 25 lakh: 5%
Above Rs 25 lakh and up to Rs 10 crore: 5.5%
Above Rs 10 crore and up to Rs 25 crore: 5.75%
Above Rs 25 crore and up to Rs 50 crore: 6%
Rs 50 crore and above: 7%
