These days interest rates have fallen so low, some of the savings bank interest rates, give you higher interest even when compared to fixed deposits. We have selected some of the best savings accounts in the country, based largely on interest rates. Here are some of the best savings account interest rates in India. Before that there are a few things that you should note.
Taxation on savings bank account
Savings Bank accounts do not attract tax, if the annual interest is less than Rs 10,000 per year. If the interest goes beyond Rs 10,000, it is added to the total income and tax is computed according to your liability. Another thing that we would like to mention is that you need to check other things apart from interest rates and these would be pertaining to free access to ATMs, issuance of at par cheque leaves etc. So, do check facilities as well.
Airtel Bank Savings Account - 7.25% interest rate
This payment bank was recently launched by Airtel, the country's largest mobile operator. The company offers an interest rate of 7.25 per cent on the balances in your savings account. This is the highest and there is no other bank in the country that offers such an interest on its savings account. Among the few things that you must note is that the bank at the moment does not have ATMs, so you would have to probably wait for a while. In any case, Airtel Savings Bank account interest rate of 7.25% is the best in the business. Transfer of money through electronic means is the option that you have to look at.
The Savings Bank Account of Yes Bank is also not a bad bet, since it offers you an interest rate of 6 per cent on the balances in your account. This is a pretty decent sum and is unlikely to change in the next future. Go for the account, if you are a long term investor. Another important point that is worth mentioning is that balances in the savings account is tax free up to an interest of Rs 10,000 per year. The minimum balance that you need to maintain in your Yes Bank savings account is Rs 10,000.
7.1% Interest rates on large balances at RBL Bank
RBL Bank gives you a savings bank account interest rates of 7.10 per cent on balances above Rs 50 Lakhs and upto Rs 5 Crores and 6.50 per cent on balances between Rs 10 lakhs upto Rs 50 Lakhs; 6.00 per cent per annum on balances of Rs. 1 lakhs upto Rs 10 Lakhs and 5.50 per cent per annum on balances upto Rs. 1 Lac on a daily balance basis. These rates will apply on the balances above Rs 1 lakhs, and sums below Rs 1 lakh, the balance will earn interest at the rate of 5.50 per cent per annum. The bank offers you some discount on lockers and also processing charges on select loans.
Lakshmi Vilas Bank
Lakshmi Vilas Bank offers an interest rate of 5 per cent per annum on daily balance upto Rs 5 lakhs and 6 per cent, if the amount is over Rs 5 lakhs. This is pretty decent and compares well with the likes of Yes Bank. Probably, this is not the best as there is no bank at the moment that matches the interest rates of Airtel Bank.
Government banks at 4%
The interest rate on savings account is at best 4 per cent. There are a few other banks that offer you more than 4 per cent, but, it is not possible to highlight all the banks.