7% on Savings Account: Is Your Bank Paying Enough?

SBM Bank India now offers up to 7% interest on savings accounts for high-balance customers. If your bank pays you 2-4%, you could be leaving thousands of rupees on the table every year.

Here's what happened: SBM Bank India has revised its savings account interest rates upward, offering up to 7% per annum on high-value deposits.. The higher rates are targeted at emerging affluent customers — typically those maintaining larger average monthly balances.. Most large Indian banks currently pay just 2.7% to 4% on regular savings accounts, making 7% a significant outlier..

What you should do: Check your current savings account interest rate — log in to net banking or call your branch and ask specifically what rate tier you're in.. Compare high-yield savings accounts from small finance banks and niche private banks like SBM, Utkarsh, or Unity that regularly offer 6-7% on select balances.. Move your emergency fund (3-6 months of expenses) to a higher-interest savings account so idle money works harder without locking it in an FD..

Small Finance Banks are RBI-regulated and deposits up to ₹5 lakh are fully insured by DICGC — same protection as SBI, so the extra interest comes with no extra real risk.