Small finance banks often pay higher returns on deposits in savings accounts compared to commercial banks

Small finance banks often pay higher interest rates on deposits compared to commercial banks. Primarily aimed at financial inclusion, small finance banks often pay higher returns on deposits in savings accounts compared to commercial banks, such as State Bank of India (SBI). Small finance banks, such as AU, Equitas, Suryoday, Jana and Ujjivan, pay interest to the tune of 4-8 per cent (per annum) on balance in savings accounts under certain conditions. (Also read: Why small finance banks offer higher interest rates than larger peers)

Here's a comparison of interest rates offered by small finance banks:

AU Small Finance Bank

AU Small Finance Bank pays the following interest rates on deposits in its savings account:

Savings account balance Rate of Interest applicable (per annum) Less than Rs 1 lakh 5.00% Rs 1 lakh to less than Rs 10 lakh 6.50% Rs 10 lakh and above (up to Rs 10 crore) 6.75% (Source: aubank.in)

Capital Small Finance Bank

Capital Small Finance Bank pays interest at the rate of 4 per cent across different types of savings accounts, according to its website - capitalbank.co.in.

Type of domestic account Rate of interest (general public and senior citizen) Savings Bank Account without Cheque Book Facility 4.00% Savings Bank Account with Cheque Book Facility 4.00% Basic Savings Bank Account (Suvidha Bachat) 4.00% (Source: capitalbank.co.in)

Fincare Small Finance Bank

Fincare Small Finance Bank pays the following interest rates on deposits in its savings account:

Slab Rate of interest (per annum) Up to and including Rs 1 lakh 6.00% Above Rs 1 lakh 7.00% (Source: fincarebank.com)

Equitas Small Finance Bank

Here are the interest rates paid by Equitas Small Finance Bank on deposit in its regular savings account with effect from January 1, 2019, according to its website - equitasbank.com:

Daily closing balance Rate of interest (per annum) Up to Rs 1 lakh 5.50% Above Rs 1 lakh and up to Rs 10 lakh 6.00% Above Rs 10 lakh and up to Rs 1 crore 6.50% Above Rs 1 crore and up to Rs 5 crore 7.00% Above Rs 5 crore and up to Rs 30 crore 7.25% Above Rs 30 crore and up to Rs 50 crore 7.50% (Source: equitasbank.com)

ESAF Small Finance Bank

ESAF Small Finance Bank pays the following interest rates on deposits in its savings account:

Savings Bank Account- Slab (day-end balance) Rate of Interest with effect from October 25, 2017 Up to and including Rs.1 lakh 4.00% Above Rs.1 lakh up to and including Rs.10 lakhs (i.e for incremental amount above Rs.1 lakh) 6.50% Above Rs.10 lakhs (i.e for incremental amount above Rs.10 lakhs) 7.00% (Source: esafbank.com)

Suryoday Small Finance Bank

Suryoday Small Finance Bank offers the following interest rates on domestic deposits in its savings account with effect from November 12, 2018, according to its website - suryodaybank.com:

Daily closing balance slabs (domestic) Rate of Interest (per annum) Up to and including Rs. 1 lakh 6.25% Above Rs. 1 lakh up to and including Rs. 10 lakh 7.25% Above Rs. 10 lakh up to and including Rs. 10 crore 7.00% (Source: suryodaybank.com)

Ujjivan Small Finance Bank

Ujjivan Small Finance Bank offers the following interest rates on deposits in its savings account with effect from July 8, 2018, according to its website - ujjivansfb.in:

Amount Interest rate (per annum) Up to 5 lakh 4% > 5 lakh to 50 lakh 5.50% > 50 lakh to 5 crore 6.75% > 5 crore 7% (Source: ujjivansfb.in)

Utkarsh Small Finance Bank

Interest on deposits in its standard savings account is paid at quarterly intervals on the basis of end of the day balance in accounts, according to Utkarsh Small Finance Bank's website - utkarsh.bank. “Your Account has the potential to earn 7 per cent p.a. (per annum) interest,” the bank mentions on its portal.

North East Small finance Bank

North East Small Finance Bank pays interest at the rate of 6 per cent on deposits of up to Rs 1 lakh and 6.25 per cent beyond Rs 1 lakh in its saving account, according to its website - nesfb.com.

Jana Small Finance Bank

Jana Small Finance Bank pays the following interest rates on deposits in its savings account:

Savings account balance Interest rate per annum Up to Rs. 1 lakh 5% More than Rs. 1 lakh up to Rs. 10 lakh 6% More than Rs. 10 lakh up to Rs. 5 crore 7% More than Rs 5 crore up to Rs 25 crore 7.5% More than Rs. 25 crore 8% (Source: janabank.com)

Also, small finance banks pay higher interest rates on fixed deposits (FDs) compared to their larger counterparts across many maturities.