Best Bank for Savings Account in India
A savings account is the most basic financial product that banks provide. By opening a savings account, people can deposit their money and keep it safe with a financial institution. At the same time, they also get very little interest.
Customers can withdraw money from their savings bank accounts whenever they want and without any restrictions, making them liquid investments.
A comparison of interest rates and other features of the available choices is imperative to determining which savings account in India is the best.
Sometimes we keep a lot of money in our savings accounts. We have to keep it as a precaution. Although interest is given by the bank on this amount, it is only around 4 percent.
Public-sector banks or government banks do not offer interest rates of more than 4 percent on savings accounts.
But savings bank interest rates are being deregulated in the country, and investors will probably be able to get more than 4 percent interest.
This is usually offered by many private and scheduled banks. Here are the names of some banks that offer the best interest rates on savings accounts in India.
Here are some of the top savings bank accounts that we’ve compiled from different sources.
Yes Bank
Yes, Bank used to give an interest rate of 7 percent on deposits in savings accounts, which was almost equal to FD.
However, later, the bank reduced the interest rate to 6 percent. Still, Yes Bank offers the best interest rates on savings accounts.
Kotak Mahindra Bank
Kotak Mahindra Bank also pays interest at the rate of 6 percent per annum on the balance in the savings account. It offers the same amount of interest as Yes Bank.
IndusInd Bank
If you have an account with IndusInd Bank and have a deposit of 10 lakhs, then the bank will give you an interest rate of 6 percent.
If the deposit amount is less than this, only a 4 percent interest rate will be given. This is the interest rate offered by most banks.
RBL Bank (Ratnakar Bank Limited)
RBL Bank offers 7.1 percent interest on savings account deposits, but your balance should be more than 10 lakhs.
This is the highest interest rate offered on savings accounts. But if the balance is less than 10 lakh and less than 1 lakh, then you will get an interest rate of 6.1 percent and 5.1 percent, respectively.
Conclusion: If the interest rate offered by the bank exceeds Rs 10,000, TDS will be deducted from your account. Tax is also deducted on the higher interest rate. Hence, it is essential to invest them in the right way.