Savings Accounts with High-interest Rates

Typically, Saving Accounts in mainstream banks offer up to a 3.5% interest rate on the daily balance. However, small finance banks are known for breaking this age-old trend and offering high interest rate. For instance, India's leading scheduled commercial bank, AU Small Finance Bank, offers higher interest rate on a Regular Savings Account. It is a high-interest rate Saving Account with Monthly Interest Payouts.

Here's everything you should know about these new-age Savings Accounts:

Here are some of the top features and benefits of a Savings Account with a high interest rate.

• High-interest Rate- You can earn up to higher interest on the funds you deposit in your Savings Account.
• Instant Access Anywhere, Anytime- Customers can access the funds available in their Savings Account as and when required. You can withdraw or transfer funds by visiting the Bank Branch or through an ATM Debit Card, NetBanking, or App Banking.
• Paperless Banking- Nowadays, you can access banking facilities anytime, anywhere. For instance, AU Small Finance Bank offers a Digital Savings Account that can be accessed through AU 0101 App / AU 0101 NetBanking.
• Access Financial Products and Services- A Savings Bank Account is your gateway to a wide range of financial products and services, including Bank Lockers, FDs, Mutual Funds, Insurance, Demat Account, and more.

As per the RBI regulations, banks must calculate interest on Savings Accounts on the daily closing balance.

Here is the formula used by the banks for calculating interest on a Savings Account-

The interest generated from a Savings Account is taxable and should be declared in the tax returns under "Income from Other Sources." Unlike Fixed Deposits (FD), banks do not deduct TDS (Tax Deducted at Source) on the interest earned from a Savings Account.

Also, under Section 80TTA of the IT Act, interest income of up to INR 10,000 from Savings Account in a financial year is tax-deductible. Any interest income above the threshold of INR 10,000 is added to the taxpayer's taxable income and is taxed as per the income tax slab.

As one of the leading scheduled commercial banks in the country, we offer one of the best interest savings rates along with a host of exciting features. With high interest rate and a Monthly Interest Payout option, the AU Savings Account is a convenient and hassle-free product to generate extra income.

Currently, you can choose from the following Savings Account options by us:

A high-interest Savings Account is an excellent way to generate risk-free returns on your savings. With AU Small Finance Bank offering high interest, take advantage of this user-friendly product to add more stability to your everyday finances.

With AU Small Finance Bank -

You can open an AU Savings Account online using our Video Banking feature.

Contact your nearest AU Small Finance Bank Branch.

Call our customer care at 1800-1200-1200

Download AU 0101 App