534 Views
A savings account is the most convenient method of investment in a bank. It serves the dual purpose of saving as well as accumulation of interest on the amount saved. Savings accounts are best suitable for individuals with stable income either in salary or any other work. To cater to the needs of such a huge customer base, banks in India offer savings accounts with different benefits.
The pandemic has resulted in a downturn in savings account interest rates as well as in other savings schemes like fixed deposits. However, there are certain banks giving a higher interest rate on savings accounts.
Here is a list of top banks offering higher interest rate on the savings account.
Bandhan bank
Rate of interest: 4%-7.15% per annum
Features
- Average amount required to be maintained monthly is Rs. 5000.
- Amount that can be deposited monthly for free is Rs. 5 lakh.
- There is no cash withdrawal limit from the branch.
- Number of free money withdrawal from other bank ATMs is 5 withdrawals/month.
- Multiple facilities like net banking, mobile banking, atm-cum-debit card facility etc. available.
IDFC first bank
Rate of interest: 6%-7%
Features
- Average amount required to be maintained is Rs 25,000.
- Any individual residing in India can open a savings account. Overseas Citizens of India are also eligible to open a savings account at some branches.
- Smooth and hassle-free transactions available.
- Free visa debit card is offered.
- Nominal charges are applicable.
AU small finance bank
Rate of interest: 4%-7%
Features
- Minimum average amount required to be maintained monthly is Rs. 2000-Rs.5000
- It offers automatic up-gradation facility as additional benefits.
- It ensures smooth and hassle-free transactions.
- It offers multiple debit card options.
- Pan India banking facility available.
RBL bank
Rate of interest: 4.75%-6.75%
Features
- Minimum average amount required to be maintained monthly is Rs. 500-Rs. 2500
- ATM transaction limit is Rs. 50,000 and at POS terminal is Rs. 30,000
- No charge levied on funds transfer through NEFT or RTGS.
- Rupay debit-cum-atm card available.
- No fees is charged on transactions at the bank’s ATM.
Ujjivan small finance bank
Rate of interest: 4%-6.5%
Features
- No requirement of maintenance of average monthly average balance.
- No fees is charged due to non-maintenance of balance.
- Customized Rupay debit card available.
- Transfer of funds through NEFT, RTGS available.
- It offers 5 free withdrawals/month from other bank’s ATM.
IndusInd bank
Rate of interest: 4%-6%
Features
- Minimum average amount required to be maintained monthly is Rs. 1500- Rs. 10,000
- Locker facility is available.
- Daily cash withdrawal limit at the bank’s ATM is Rs. 5,00,000 and at POS is Rs. 10,00,000
- No maintenance charges are applicable.
Yes bank
Rate of interest: 4%-6%
Features
- Online savings account and offline savings account opening available.
- Minimum amount required to be maintained is Rs. 10000
- 5 free cash withdrawals from other bank’s ATMs can be availed, provided the minimum balance is maintained.
- Free funds transfer through NEFT/RTGS available.
- Net banking, mobile banking and locker facility available.
Lakshmi Vilas bank
Rate of interest: 3.25%-5.75%
Features
- Rs. 500- Rs. 1000 is the average quarterly balance that needs to be maintained.
- Classic Rupay international debit card is available.
- Swift funds transfer available.
- 5 free ATM withdrawals from other bank’s ATM is allowed and if exceeded, Rs. 18 is charged for each transaction.
- Minor aged 12 years or above are eligible to open a savings account.
DCB bank
Rate of interest: 3.25%-5.5%
Features
- Minimum amount required to be maintained is Rs. 5000
- No cost fund transfer through NEFT/RTGS available.
- No charges levied on transactions through the bank’s ATM.
- Locker facility is available.
DBS bank
Rate of interest: 3.5%-5%
Features
- Average quarterly balance required to be maintained is Rs. 25,000
- Instant account opening is allowed by using Aadhaar details.
- VISA debit card is available.
HDFC bank
Rate of interest: 4%
Features
- No minimum balance is required to be maintained.
- Debit-cum-ATM card offered for both international and national purpose.
- Locker facility is available.
- Internet banking and mobile banking available.
Axis bank
Rate of interest: 4%
Features
- The minimum amount required to be maintained is Rs. 2500- Rs. 1,00,000.
- Cashbacks through debit cards are offered.
- Rupay debit card is offered.
- Pan India banking services provided.
Kotak mahindra bank
Rate of interest: 4%-6%
Features
- Zero balance account is available.
- No charge levied on fund transfer through NEFT/RTGS.
- No monthly account charges are applicable.
This article is a compilation of the top 10 highest interest rate providing banks in India. However, before opening a savings account in a bank, go through all your options. Choose a bank after considering all the important features as mentioned.