A savings account is the only safe choice to consider when it comes to earning interest while keeping your funds conveniently withdrawable. Interest rates on savings accounts vary by bank and by the amount of money you have in your account. Your deposit will earn money over time until they are withdrawn, in addition to a better rate of return. When establishing a savings account, seeking banks that provide higher rates of interest is always valuable, and let me remind you that two private sector banks will begin offering new savings account interest rates to their customers from April 1st. So let's have a look at those two banks purely to see what's available to you in terms of interest right now.
IDFC First Bank
IDFC First Bank will provide you a maximum interest rate of 6%, which is higher than that of a fixed deposit account, starting from April 1, 2022. Savings bank account interest would be determined on daily end-of-day balances at the rate of interest, according to Reserve Bank of India guidelines. The bank will pay interest on your Savings Bank account on a monthly basis.
|Balance (Rupees)||Rate of Interest (% p.a.) (Progressive)|
|Less than or equal to 1Lac||4.00%|
|More than 1lac to less than or equal to 10lac||4.50%|
|More than 10lac to less than or equal to 25lac||5.00%|
|More than 25lac to less than or equal to 1Cr||6.00%|
|More than 1Cr to less than or equal to 100Cr||5.00%|
|More than 100 Cr to less than or equal to 200 Cr||4.50%|
|More than 200 Cr||3.50%|
|Source: Bank Website (Effective from 01/04/2022)|
RBL Bank cut savings account interest rates on Thursday. Customers received a maximum interest rate of 6.25 percent until March 31, 2022, but commencing April 1, 2022, savings account holders will get a maximum interest rate of 6.00 percent. Interest on savings bank accounts will be paid quarterly, while interest will be determined on a daily account balance basis.
|Daily balance||Rate of Interest (p.a.) effective till March 31, 2022||Rate of Interest (p.a.) w.e.f April 01, 2022|
|Upto Rs. 1 lakh||4.25%||4.25%|
|Above Rs. 1 lakh upto Rs. 10 lakh||5.50%||5.50%|
|Above Rs. 10 lakh and upto Rs. 3 Crore||6.25%||6.00%|
|Above Rs. 3 Crore upto Rs. 5 Crore||6.25%||6.00%|
|Above Rs. 5 Crore upto Rs. 10 Crore||6.00%||5.75%|
|Above Rs. 10 Crore upto Rs. 50 Crore||5.75%||5.75%|
|Above Rs. 50 Crore upto Rs. 100 Crore||5.25%||5.25%|
|Above Rs. 100 Crore upto Rs. 250 Crore||5.00%||5.00%|
|Above Rs. 250 Crore upto Rs. 300 Crore||5.00%||4.00%|
|Above Rs. 300 Crore||4.00%||4.00%|
|Source: Bank Website|
Customers should be reminded that, under section 80TTA of the Income Tax Act, interest earned on a savings bank account is tax-free up to Rs 10,000. If the interest generated exceeds Rs 10,000, the excess interest on the savings account will be taxable on the hand of an account holder. Savings account interest is taxed under the heading "Income from other sources," and banks do not deduct TDS on interest. Customers who wish to create a savings account at a post office will get an unchanged interest rate of 4% for the first quarter of the financial year 2022-23, which runs from April 1 to June 30, 2022.