Savings account offer interest rate to their account holders. A higher interest rate is better as we can get more interest on our savings. Here are some of the high interest savings accounts by top banks.
The interest is calculated on your daily closing balance. For e.g., if you had Rs. 10,000 in the morning and during the bank closing hours, your balance came down Rs.7,000, then the interest will be calculated on Rs.7,000. A high interest rates given by banks mean that your money will grow faster in your savings account.
Also, the interest rate offered by the bank depends on the balance of your savings account. Typically, banks offer a higher balance higher interest rate for balance of above Rs.1 lakh.
As savings account provides easy liquidity, it is recommended that you have a substantial balance in your account to tide over emergencies. Typically, you should keep three months of your expenses in a separate savings account.
The interest rate on savings account keeps changing regularly. Hence, it is always better to check the revised interest rate on the bank’s website. Currently, the average interest rate on savings account offered to individuals is 3% or less. 7% is the best interest rate paid on savings accounts for retail customers with balance of less than Rs.1 crore.
Kotak Mahindra Bank is one of the top banks with high interest rate. The bank gives a high interest rate of up to 4% on their savings account. The interest rate is 3.5% p.a. if the balance in the savings account is up to Rs.1 lakh. For deposits above Rs.1 lakh, the bank pays an interest rate of 4%.
|Balance up to Rs. 1 lakh||3.5%|
|Balance over Rs. 1 lakh and up to Rs. 5 crores||4%|
|Balance above Rs. 5 crores||3.75%|
After receiving the final RBI nod in 2015, Bandhan Bank, a relatively new bank has become popular among customers. Bandhan Bank offers interest rate of up to 6% to its customers. The bank offers 6% for customers with a bank balance of Rs.1 lakh and above. For customer accounts of balance of up to Rs.1 lakh, the bank offers an interest rate of 3%.
Recently, IDFC Bank was merged with Capital First giving rise to new entity called IDFC First Bank. As a new merged entity, the bank is offering high interest rate of up to 7% their customers. The starting interest of the bank on the savings account is 6% which is offered to customers with balance of less than Rs. 1 lakh.
|Less than or equal to Rs. 1 lakh||6%|
|More than Rs. 1 lakh to less than or equal to Rs. 1 crore||7%|
Digibank by DBS is a fully online bank. Digisavings account is the savings account of Digibank. As it is completely online savings account, you can access the account through their website and app. One can make a digisavings account savings with your PAN card and Aadhaar card. The bank also fetches attractive interest rate of up to 5%. It offers an interest rate of 3.5% for balance of up to Rs. 1 lakh.
|Balance up to Rs. 1 lakh will get 3.5% interest rates|
|Any balances over and above Rs. 1 lakh and up to Rs. 2 lakhs will get 5% on the incremental amount|
|Any balances over and above Rs. 2 lakhs and up to Rs. 20 lakhs will get 3.50% on the incremental amount|
|Any balances over and above Rs. 20 lakhs and up to Rs. 50 lakhs will get 3.75% on the incremental amount|
|Any balances over and above Rs. 50 lakhs will get 4% on the incremental amount thereon|
RBL Bank is another new bank on the block. The bank offers interest rate of up to 6.75%. RBL Bank follows the 2-tier interest rate. This means the customer will receive two different interest rates on their balance. E.g., RBL customers with Rs.5 lakh as a balance, will receive differential interest rates. Customers will receive interest rate of 4.75% for the balance up to Rs.1 lakh and the rest of the balance of Rs 4 lakh will fetch 6% interest.
|Daily balance||Rate of Interest|
w.e.f 1st August 2020
|Up to Rs 1 lakh||4.75|
|Above Rs 1 lakh upto Rs. 10 lakh *||6.00|
|Above Rs. 10 lakh and upto Rs. 3 Crore*||6.75|
|Above Rs. 3 Crore upto Rs. 5 Crore*#||6.75|
These were some of the best banks with high interest rates. While it is always better to go for a savings account that offers highest interest rate, you should also look at some of the other factors such as customer service, ease of opening savings account online and ease of transacting.
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