How Ujjivan’s High-Interest Savings Accounts are Breaking Traditional Banking Norms

Savings accounts have long been seen as the safest place to keep money you’re not using, right away. But in 2025, just “keeping it safe” isn't enough. You want that money to grow too.

While most traditional banks offer low interest rates on savings accounts,  Small Finance Banks like Ujjivan SFB offer high interest savings accounts where you can earn up to 7.5%* interest on account balance (*T&C Apply). That means your idle money can earn more without you doing anything extra.

And the best part? It’s all RBI-regulated and fully safe up to ₹5 lakhs under the Deposit Insurance and Credit Guarantee Corporation (DICGC) rules.

What Makes Ujjivan SFB’s Savings Account Different?

Here’s why Ujjivan SFB’s savings accounts are worth looking at:

• Tiered Savings Account Interest Rates: You earn more as your balance increases. Currently, Ujjivan offers one of the highest savings account interest rates in India.
• Ujjivan Rewardz: A loyalty programme that allows you to earn points on opening on account opening or for initiating transactions. You can redeem these points for  vouchers, gifts, etc.
• Digital-First Experience: You can open a Digital Savings Account and check balance, transfer money, pay bills, etc.,  all from your phone.
• Multiple Account Types: Whether you’re a student, a salaried employee, or managing family funds, Ujjivan SFB has options like Digital Savings Account, Classic Savings Account, Maxima Savings Account, and Senior Citizen accounts.

Bottom line: Ujjivan SFB’s savings account offers up to 7.5% interest (T&C Apply*), returns more than what most banks give — especially if you keep a good balance. 

Ujjivan SFB’s Tiered Savings Account Interest Rates

Ujjivan SFB uses a slab-based (or tiered) system for calculating interest. This is what sets it apart from most traditional banks.

Instead of giving one fixed rate for your entire balance, Ujjivan SFB applies different interest rates to different parts of your savings. As your balance increases, parts of it earn more interest.

Click here for the latest rates, effective June 19, 2025

Example:

Let’s say your account balance is ₹12 lakhs.

• he first ₹1 lakh will earn 3%
• The next ₹4 lakhs (₹1L to ₹5L) will earn 4%
• The next ₹5 lakhs (₹5L to ₹10L) will earn 6%
• The remaining ₹2 lakhs (₹10L to ₹12L) will earn 7%

That’s how Ujjivan SFB rewards higher savings account interest rates without locking your money like a Fixed Deposit would.

How the Savings Account Interest Rates are Calculated & Paid

A common question is: When and how does this interest actually get added to your account?

Here’s how Ujjivan SFB handles it:

• Daily Calculation: Interest is calculated every day based on your closing balance.
• Quarterly Credit: The interest amount is added to your account once every quarter (every 3 months).
• No manual steps needed: You don’t have to do anything — it’s automatic.

You can also try Ujjivan SFB’s Savings Account Interest Calculator to see how much you might earn based on your balance.

Do Senior Citizens Get Extra?

This is a commonly misunderstood area — so here’s the simple truth:

No, Ujjivan SFB does not offer extra interest on savings accounts for senior citizens. The same interest slabs apply to everyone, regardless of age.

But… Senior citizens do get 0.50% extra interest on Ujjivan SFB Fixed Deposits.

So if you're looking for higher earnings and don’t need daily access to your money, a fixed deposit might be a better option. You can read more about the differences here:
FD vs. Savings Account – What’s Better?