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Top Banks that offer High Interest on Savings Accounts

Kotak Mahindra Bank, Bandhan Bank, IDFC First Bank, Digibank by DBS, RBL Bank are some of the best banks with high interest rates on savings account. Read on to find out more about these top banks with high interest rate.

Savings account is one of the basic financial products. You will need a savings account to carry out any financial transactions. However, there are many savings accounts. How will you find the best savings account for yourself?

The interest rate is one of the features of savings bank account that will help you to find the best savings account.

One of the ways to know the best savings account is the interest rate offered by these 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.

Read: How is interest rate on savings account calculated?

Also, the interest rate offered by the bank depends on the balance of your savings account. A higher balance usually fetches higher interest rate. However, the interest rate falls after the balance exceeds a certain threshold. The best interest rates paid on savings accounts is mainly on accounts with 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.

Read: 9 reasons why you need an Emergency Fund

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 is 5%. 7% is the best interest rate paid on savings accounts for retail customers with balance of less than Rs.1 crore.

Here are some of the savings account offers highest interest rate accounts:

Kotak Mahindra Bank Savings Account  

Kotak Mahindra Bank is one of the top banks with high interest rate. The bank gives a high interest rate of up to 6% on their savings account. The interest rate is 4% p.a. if the balance in the savings account is less than Rs.1 lakh, the rate of interest for above Rs.1 lakh to Rs 1 crore is 6.00%. For balances above Rs. 1 crore, the rate of interest is 5.50%.

You can choose the savings account of your choice among the different savings account. Besides the regular savings account, it also has women, children, senior citizens savings account.  

Balance Interest Rate
Balance up to Rs. 1 lakh 4%
Balance over Rs. 1 lakh and up to Rs 50 lakhs 6%
Balance above Rs. 50 lakhs 5.50%

Click here to know more about Kotak Savings account.

Bandhan Bank Savings Account Interest Rate

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 less than Rs.1 lakh, the bank offers an interest rate of 4.25%.

Click here to know the different types of Bandhan Bank Savings Account.

IDFC First Bank

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.

Balance Interest Rate
Less than or equal to Rs. 1 lakh 6%
More than Rs. 1 lakh to less than or equal to Rs. 1 crore 7%
More than Rs.1 crore to less than or equal to Rs.50
crore
7.25%
More than Rs.50 crore to less than or equal to Rs. 250
crore
7%
Above 250 crores 8.5%

Digibank by DBS

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 7%. It offers an interest rate of 5% for balance of up to Rs. 1 lakh.

Balance Interest
Balance up to Rs. 1 lakh 5%
Any balance over and above Rs. 1 lakh and up to Rs. 2
lakhs
7%
Any balance over and above Rs. 2 lakhs and up to Rs. 5
lakhs*
5.50%
Any balance over and above Rs. 5 lakhs 4%

* 5.5% p.a on balance upto Rs. 1 lakh and 5% p.a on balance of above Rs. 2 lakhs and upto 5 lakhs.

Click here to know more about DigiSavings Account.

RBL Bank

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. For e.g., RBL customers with Rs.5 lakh as a balance, will receive differential interest rates. Customers will receive interest rate of 5% for the balance up to Rs.1 lakh and the rest of the balance of Rs 4 lakh will fetch 6% interest.

Savings Interest Rates
wef October 1, 2019
Daily Balance Grid Applicable to
Balance
Revised interest
rates
(p.a.)
Upto Rs. 1 Lakh Entire Balance 5.00%
> 1 Lakh upto Rs. 10 Lakhs Balance > 1 Lakh 6.00%
10 Lakhs upto Rs. 5 Cr Balance > 1 Lakh 6.75%

Conclusion:

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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