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Savings Account

With a savings account, let your money work for you! This financial product is the easiest way to save your money and earn a steady interest in it. Savings account makes sure your money is safe and secure. Many banks now provide added benefits to the customers availing their Savings Account.

Bank
Interest Rate
Minimum Balance
Features
Apply
Bank
Kotak Mahindra Bank
Kotak Mahindra Bank
Interest Rate
6% p.a.
(Balance above 1 lac & up to Rs. 1 Cr.)
5.5% p.a.
(Balance above Rs. 1 Cr.)
5% p.a.
(Balance up to Rs. 1 lac)
Minimum Balance
Zero Balance for 811 Savings Account
Features
Show Details
Bank
HDFC Bank
HDFC Bank
Interest Rate
3.5% p.a.
(Below Rs. 50 lakhs.)
4% p.a.
(Above Rs. 50 lakhs)
Minimum Balance
Rs 10,000
Features
Show Details
Bank
Axis Savings Account
Axis Savings Account
Interest Rate
4% p.a.
(Balance of Rs. 50 lac & above)
3.5% p.a.
(Balance of below Rs. 50 lac)
Minimum Balance
Rs 10,000
Features
Show Details
Bank
SBI (State Bank of India)
SBI (State Bank of India)
Interest Rate
4% p.a.
(Balance Rs. 1cr & above)
3.5% p.a.
(Balance up to Rs. 1cr.)
Minimum Balance
Rs 5,000
Features
Show Details
Bank
IndusInd Bank
IndusInd Bank
Interest Rate
6% p.a.
(Daily balance above Rs. 10 lac)
5.5% p.a.
(Daily balance above Rs. 1 Cr. but less than Rs.10 Cr. )
5% p.a.
(Daily balance above Rs. 1 lac but less than Rs.10 lac)
4% p.a.
(Daily balance up to Rs. 1 lac)
Minimum Balance
Rs 10,000 & Above
Features
Show Details
Bank
RBL Bank
RBL Bank
Interest Rate
7.1% p.a.
(Daily balance above Rs. 10 lac)
6.1% p.a.
(Daily balance above Rs. 1 lac )
5.1% p.a.
(Daily balance up to Rs. 1 lac )
Minimum Balance
Rs 5,000 & above
Features
Show Details
Interest Rate
6% p.a.
(Balance above 1 lac & up to Rs. 1 Cr.)
5.5% p.a.
(Balance above Rs. 1 Cr.)
5% p.a.
(Balance up to Rs. 1 lac)
Minimum Balance
Zero Balance for 811 Savings Account
Show Details
Features
  • Seamless banking services
  • Ease of hassle-free Internet & mobile banking to the account-holders
  • Myriad of savings account options
Interest Rate
3.5% p.a.
(Below Rs. 50 lakhs.)
4% p.a.
(Above Rs. 50 lakhs)
Minimum Balance
Rs 10,000
Show Details
Features
  • Current or Savings account balance
  • Fixed deposit summary
  • Current or Savings account transaction history
Interest Rate
4% p.a.
(Balance of Rs. 50 lac & above)
3.5% p.a.
(Balance of below Rs. 50 lac)
Minimum Balance
Rs 10,000
Show Details
Features
  • Ease of Internet and mobile banking
  • Good customer care service
Interest Rate
4% p.a.
(Balance Rs. 1cr & above)
3.5% p.a.
(Balance up to Rs. 1cr.)
Minimum Balance
Rs 5,000
Show Details
Features
  • Offers a wide spectrum of banking benefits
  • Ease of banking and quick customer care services –even in the remotest areas of the country Additional account facilities & benefits
Interest Rate
6% p.a.
(Daily balance above Rs. 10 lac)
5.5% p.a.
(Daily balance above Rs. 1 Cr. but less than Rs.10 Cr. )
5% p.a.
(Daily balance above Rs. 1 lac but less than Rs.10 lac)
4% p.a.
(Daily balance up to Rs. 1 lac)
Minimum Balance
Rs 10,000 & Above
Show Details
Features
  • Highly personalized banking services
  • Access your bank account through the web or the mobile app Discounts on movie tickets, and more.
Interest Rate
7.1% p.a.
(Daily balance above Rs. 10 lac)
6.1% p.a.
(Daily balance above Rs. 1 lac )
5.1% p.a.
(Daily balance up to Rs. 1 lac )
Minimum Balance
Rs 5,000 & above
Show Details
Features
  • Myriad of savings account options
  • Offers up to 7 percent rate of interest on savings above 10 Lakhs

 

What is a Savings account?

A savings account in any Indian bank is a simple and secure mode of storing your hard-earned money and earning regular interest on the deposit. A saving bank account provides high liquidity as you can withdraw (and deposit) money into the account as and when the need arises. There are multiple types of savings account, which provide their own benefits. This article discusses the types of savings account, along with the best banks for opening a savings bank account in India.

Why open a Savings account?

A saving account keeps your money secure and is much safer than keeping all your money at home. Additionally, the 2016 demonetisation drive has it more advisable to keep most of your money in a secure bank account. With all the debit card, ATM, and online banking facilities provided by most Indian banks, a saving bank account has emerged as the simplest and safest mode of doing financial transactions in India. Additionally, depending on the type of saving bank account and the bank, you can earn an attractive bank interest on savings account, along with availing convenient cheque book and automated money transfer facility to make payments or transfer funds.

How to open a Savings account?

A savings account in India can be opened in any Indian or foreign bank, post office, or any reputed financial institution. You can open a new savings account within a few hours by submitting your application and your supporting documents to the bank officials. In the earlier days, new applicants needed to have an introducer with an existing account in the same bank to be able to open your account, but now this is not mandatory.

With the recent growth in mobile banking, many leading banks allow you to open an online savings account without any visit to any physical bank branch.

Features and Benefits of a Savings Account

Among the major benefit and objective of opening a savings account is to promote savings and manage your finances wisely. A savings account in India can be opened with a deposit ranging from zero balance to 5000/-. As an account holder, you have the flexibility of depositing and withdrawing any amount into your bank account. Depending on the bank, you can also earn savings account interest ranging from around 3-6% annually.

Depending on the type of account that you open, a saving bank account in any bank can offer different features and benefits.

Features of a savings bank account include:

  • High interest rates earning on your average account balance
  • Minimum requirement of maintaining an account balance
  • Debit and Credit card facilities
  • Online access to your bank account through net and mobile banking
  • Access to ATMs for cash withdrawals and deposits
  • A distributed network of bank branches all across the country for easier operation of your bank account from any location.
  • Easier access to bank loans and other services
  • Access to electronic modes of money transfer including NEFT, RTGS, and IMPS.

A savings bank account provides customers with the following benefits:

  • Encourages bank savings for salaried employees and fixed income earners.
  • Earn additional income through bank interests and other deposits.
  • Provides a history of all financial transactions, thus enabling the account holder to keep tracks of their spending.
  • Enables account holders to transfer money to any other bank account more safely and instantly.

Types of Savings Accounts in India

Depending on individual needs and objectives, customers can open and operate different types of savings accounts in Indian banks, including:

  • Regular savings account

Also known as a basic savings account, any individual in India can open a regular savings account in the bank of their choice. In most banks, regular savings accounts require the maintenance of a minimum account balance, failing which the bank charges you a penalty. Most banks also provide regular savings account holders with facilities such as cheque book and debit card.

  • Salary account

This savings account is only available for salaried individuals and is usually used by companies to deposit their employee’s salaries directly into the individual accounts. Some of the additional benefits offered by salary accounts include zero balance savings, high interest savings, and easier availability of bank loans and other facilities. Most banks convert salary accounts into regular accounts if no salary is credited to the account for more than 3 months.

Salary accounts are available at most of the leading banks in India including Kotak Mahindra bank, ICICI bank, and HDFC bank.

  • Savings account for Senior citizens

This type of savings account is available only for senior citizens above the age of 60 years. Some benefits of senior citizen accounts include higher interest rates, no requirement of maintaining minimum balance, and higher returns on term deposits. Some banks offering senior citizen account facility include Yes bank, Kotak Mahindra bank, and State bank of India.

  • Joint savings account

A joint savings account is operated by 2 (or more) account holders such as husband and wife and even other family members. Each of the account holders are issued separate cheque books and debit cards and they can independently perform transactions on the bank account. Joint savings account is offered by most banks in India.

  • Kid’s saving or minor account

This type of saving account is opened and operated by a child’s parent or guardian on the behalf of the minor until they reach an age of 18. Leading banks in India offering a child saving account to their customers include HDFC bank, ICICI bank, and Axis bank.

  • Zero balance account

Aimed to promote savings, a zero-balance account is a savings bank account where account holders are not charged any penalty for not maintaining the minimum balance in their accounts.

  • Savings account for women

This type of savings account is only available for women and is designed to encourage more Indian women to open their own bank accounts. Compared to regular savings account, this savings account offers selected benefits such as higher rate of interest, discounts on other bank products, and personal insurance coverage.

  • Savings account for students

This type of savings account is only available for college students in India. Some of the benefits provided by student saving accounts include zero balance facility, net or mobile banking facility, and easier access to student loan facility. Some of the banks offering a student saving account facility in India include State bank of India, DigiBank, and Vijaya bank.

  • Pradhan Mantri Jan Dhan Yojana (PMJDY) Savings account

Launched by the current Indian government under Prime Minister Narendra Modi, the PMJDY account is designed to encourage the weaker sections of the Indian society to open bank account. This savings account is available with benefits such as no requirement of maintaining minimum account balance, debit card facility, and a maximum of 4 cash withdrawals in a month. An insurance cover of 30,000/- and an accidental cover of 1 lakh is also provided to the account holder.

How to Check Account Balance

As a savings account holder, you have multiple ways of checking your account balance. The available modes are:

  • Passbook or bank statement

A bank passbook is the most traditional method of knowing your account balance. You have to simply walk into your bank branch and get the passbook updated to current date. Generating your yearly or half-yearly bank statement is another method of checking account balance and other transactions.

  • ATMs

If your bank has issued a debit card, you can walk into any bank ATM and check your account balance in quick time.

  • Internet banking

Technology-savvy customers can also check their account balance through Internet banking. To login to their online banking account, customers must enter their user name (or unique customer ID) along with the correct account password.

  • Mobile banking

Mobile banking is the fastest and most convenient way of checking your account balance. If your bank support mobile banking, all that you have to do is to install the banking app on your smartphone and configure it to your account details.

Best Savings Accounts in India

This section discusses the best banks for opening a savings account in India, including which bank gives highest interest rate on saving account for customers.

State Bank of India

State Bank of India or SBI offers the SBI Savings Account for Indian citizens, which is an insta saving account. Along with a complementary RuPay debit card and paperless account opening, SBI offers an interest rate of over 3.5% for deposits of up to 1 crore. Customers can also benefit from the large number of SBI branches and ATMs all across the country.

ICICI Bank

ICICI Bank offers a regular ICICI saving account with a daily cash withdrawal limit of 50,000/-. Along with features such as free Internet and mobile banking, ICICI customers are also provided with a complementary smart shopper debit card. The ICICI saving account interest rate ranges from 3.5% for balances (up to 50 lakhs) to 4% for balances above 50 lakhs.

HDFC Bank

Among the leading banks in India, HDFC Bank offers 19 different types of savings accounts including regular savings account, salary account, basic saving account, women’s saving account, and a senior citizen account. With over 4,700 branches and 12,000 ATMs all across the country, HDFC bank offers interest rate ranging from 3.5% for balance of up to 50 lakhs to 4% for balance above 50 lakhs.

Kotak Mahindra Bank

Rated among the best savings account in the country, Kotak Mahindra bank offers the 811 Kotak saving account with features such as zero balance, virtual debit card facility, and availability of convenient mobile banking facility. The Kotak saving account interest rate ranges from:

  • 5% per annum for deposits up to 1 lakh
  • 6% per annum for deposits between 1 lakh and 1 crore
  • 5% per annum for deposits above 1 crore

Axis Bank

Previously known as UTI bank, the Axis Bank saving account facility includes bank accounts such as the ASAP Instant Savings account, Prime Savings account, and the Women’s savings account, among others. With over 3,700 branches and 12,800 ATMs all across the country, Axis Bank saving account interest rate ranges from:

  • 5% per annum for deposits up to 50 lakhs
  • 4% per annum for deposits between 50 lakh and 100 crores
  • 6% per annum for deposits above 100 crores

Canara Bank

Among the leading banks in India, Canara bank offers different types of savings account for every section of the Indian society including the Canara Champ Deposit Scheme (for children) and the Canara Jeevandhara account for senior citizens. The bank offers an interest rate of 4% on all its savings bank accounts.

Punjab National Bank or PNB

Punjab National Bank (also known as PNB) is among the oldest banks in the country. It offers savings account designed for general customer, defence personnel, senior citizens, along with minor children accounts and women’s accounts. PNB offers an interest rate of 3.5% annually on its deposit balance (of less than 50 lakhs) and 4% for accounts with balance of over 50 lakhs.

IndusInd Bank

IndusInd bank offers a wide variety of savings bank accounts to its customers including the IndusInd Privilege Active Savings Account that lets you earn an interest of 6% annually. Other IndusInd bank saving account facilities including the choice of selecting your own account number, along with a Platinum Plus debit card and free fund transfer convenience. IndusInd Bank saving account interest rate ranges from:

  • 4% per annum for deposits up to 10 lakhs
  • 5% per annum for deposits between 10 lakhs and 1 crore
  • 5% per annum for deposits between 1 to 10 crores
  • 6% per annum for deposits above 10 crores

The IndusInd bank saving account minimum balance is 10,000/- (or more), failing to maintain which attracts a non-maintenance charge of 350/-.

Development Bank of Singapore (DBS)

DBS offers 4 types of savings accounts including Digibank by DBS (which is zero-balance account that can be opened digitally), DBS Global Indian account (for NRI bankers), and a Basic savings bank account.

DBS offers attractive interest rates on its deposits:

  • 6% per annum for balance of up to 1 lakh
  • 7% per annum for balance between 1 to 2 lakhs
  • 5% per annum for balance of above 2 lakhs but less than 5 lakhs
  • 4% per annum for balance above 5 lakhs

RBL Bank

Formerly known as Ratnakar Bank (founded in the year 1943), RBL Bank offers a wide variety of savings accounts to its customers. The RBL savings account offers many banking features including free cheque books, internet and mobile banking facilities for online customers, debit card, and electronic clearing facilities. The RBL Bank saving account interest rate ranges from:

  • 5% per annum for an account balance of less than 1 lakh
  • 6% per annum for an account balance between 1 to 10 lakhs
  • 5% per annum for an account balance of more than 10 lakhs but less than 50 lakhs

Dena bank

Among the popular banks in India, Dena bank offers a variety of saving bank accounts including the premium saving account, the Dena Jeevan SB account (that offers life insurance cover for its account holders), and the Dena Minors Saving account (for minors above the age of 10). Dena bank offers an interest rate of 3.5% on balance of up to 50 lakhs and 4% for balance above 50 lakhs

Yes Bank

Among the recently-established banks in India, Yes bank offers a variety of savings bank account for different customers including premium accounts and accounts for senior citizens, children, defence personnel, and women. Yes bank also offers the best interest rates among contemporary banks at:

  • 6% per annum for a savings account balance of less than 1 crore
  • 5% per annum for a savings account balance of more than 1 crore

Standard Chartered Bank

Among the leading savings account banks in India, Standard Chartered bank offers a variety of bank account including its SC Digital Savings account (with a monthly average balance of 10,000/-), Employee banking account, and SuperValue account. Other facilities provided by the bank include 24×7 phone banking support and mutual fund investments.

Standard Chartered bank provides an interest rate of 3.5% on account balance of up to 50 lakhs and 4% on an account balance of above 50 lakhs.

HSBC Bank

HSBC Bank offers primarily 2 types of savings bank account, namely the HSBC Basic Savings Bank Deposit Account (BSBDA) and the HSBC Basic Saving Deposit (BSBD) for small accounts. Both these basic savings account does not require the maintenance of any minimum account balance and can be opened without any initial cash deposit.

Lakshmi Vilas Bank

Established in the year 1926, Lakshmi Vilas bank is among the fastest growing banks in India. Along with a basics saving account that requires zero balance, Lakshmi Vilas bank offers the “Lakshmi Mahila Power” savings account designed for women and the “Lakshmi Saving Youth Power” account for young individuals aged between 12 to 24 years. The bank offers an interest rate ranging from 4-7% based on average balance and type of account.

Bandhan Bank

The Bandhan bank offers a variety of saving bank account designed to cater to different needs of banking customers. This regional bank offers an annual interest rate of 4.25% (for account balance of less than 1 lakh) and 6% (for account balance of more than 1 lakh).

IDBI Bank

IDBI Bank offers its customers a range of savings bank accounts with benefits including fast fund transfer, bill payments, attractive interest rates, international debit card, mobile banking facility, and other value-added services.

IDFC Bank

IDFC Bank allows customers to open an online savings account with a deposit of just 25,000/-.  With facilities such as zero-balance banking, IDFC Bank provides multiple benefits including a lifetime-free VISA debit card, unlimited and free fund transfer, and free transactions on any bank ATM across the country. The bank also offers 4% interest on any account balance, which is paid quarterly.

Bank of Baroda

Among the leading nationalized banks in India, Bank of Baroda (or BoB) offers a host of saving bank accounts for their customers, including premium saving accounts, salary accounts, basic saving accounts, and accounts for senior citizens and women.

Bank of Baroda also offers an interest rate of 3.5% per annum on any bank balance of less than 50 lakhs and 4% on accounts with an average balance of over 50 lakhs.

Bank of India

Bank of India is another established nationalized bank with a network of bank branches and ATMs all across the country. The savings account offered by the bank ranges from the Ordinary Savings Account (with an initial deposit of just 500/-) to the BOI Super Saving Plus account, which requires an average quarterly balance of 5 lakhs and an initial balance amount of 20 lakhs.

Bank of India also offers an attractive interest rate of 3.5% per annum on an average balance of less than 50 lakhs and 4% on accounts with an average balance of over 50 lakhs.

Citibank

As the subsidiary of the Citigroup financial corporation, Citibank India has a branch network of 44 branches all across India along with around 700 ATMs in over 30 Indian cities. Due to the different banking needs of its customers, Citibank offers a variety of savings account including the Citibank Savings account (with facilities such as personal banker and lounge access), the Citi Priority Account (with the international Citi Priority World Debit card facility), and the Citibank Saving account for expatriates.

Citibank offers an interest rate of 4% per annum in all its savings accounts.

Post Office Savings Scheme

As an alternative to a banking savings account, customers can open a savings account in the post office nearest to their place of residence. A post office savings scheme is rated among the safest mode of investments in the country and is more accessible to people staying in rural and semi-urban areas of India with few banking options.

A post office savings account can be opened with an initial deposit of just 20/- with a maximum deposit amount of 1 lakh. A post office savings scheme has multiple features and benefits including no lock-in or maturity period, a minimum balance requirement of 50/- (for a general account) and 500/- (for an account with cheque book facility). Customers can also opt for the Post Office Monthly Income Scheme, which pays out an interest of 7.7% on their deposits.

 

 

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