A Savings Account is among the widely used banking products that not only provide your guaranteed returns but also liquidity and capital security. But the interest rates on savings accounts however, are normally lower than fixed deposits. Even if ensuring high liquidity it can be a smart approach to park your funds in order to get assured returns. Remember that the interest rates that come with a savings account are subject to certain provisions such as type of account, minimum account balance and so on. Make sure that before finalizing your choice, you have perfect insight about all these considerations and interest rates of banks or NBFCs. Below we have covered the top 10 banks that are currently offering higher interest rates on savings accounts, which will enable you to choose the best savings account for yourself.
Key takeaways of a savings account
- A savings bank account is a safe location where surplus funds or salary amount can be kept.
- Interest rates on savings accounts can vary from 3 to 7.15%
- Using a savings account an account holder can make use of net banking or mobile banking service of the particular bank.
- Banks typically provide benefits for customers who hold the minimum quarterly balance on the locker rental facilities.
- Banks also have different insurance coverage, including personal accidents and death, for savings account holders.
- By opening a savings account with a particular bank you are granted with an ATM-cum debit card which you can use across the country to make withdrawals and other related banking services.
Documents required to open a savings account
In order to open a savings account with a specific bank, you must keep the below-listed documents handy.
Identity proof: PAN, Voter ID, passport, Aadhaar card, driving license, PAN, 2 passport size photographs
Address proof: Driving license, Voter ID Card, Aadhaar card, utility bills of the last 3 months
Eligibility required to open a savings account
For different banks, the Savings Account eligibility conditions may be different. Below are some basic ones:
- Indian residents with a minimum age limit of 18 years old
- Non-Resident Indians
- Hindu Undivided Family (HUF)
- Resident foreign nationals
Savings account interest rates
Below are the best savings accounts in India in terms of interest rates.
|Sr No.||Banks||ROI in % p.a.||Minimum deposit requirement|
|1||Bandhan Bank||3 to 7.15%||Rs 5000|
|2||RBL Bank||4.75 to 6.50%||Rs 500 to Rs 2500|
|3||IndusInd Bank||4 to 6%||Rs 1500 to Rs 10,000|
|4||IDFC First Bank||3.5 to 6%||Rs 10,000|
|5||Yes Bank||4 to 5.5%||Rs 2500 to Rs 10,000|
|6||DCB Bank||3.25 to 5.5%||Rs 2500 to Rs 5000|
|7||Karnataka Bank||2.75 to 4.5%||Rs 1000 to Rs 2000|
|8||South Indian Bank||2.35 to 4.5%||Rs 1000 to Rs 2500|
|9||Kotak Mahindra Bank||3.5 to 4%||Rs 2000 to Rs 10,000|
|10||City Union Bank||3.5 to 4%||Rs 7500|