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4 Savings Accounts With The Highest Interest Rates
Keeping balances in the savings account when the interest rates are high makes sense, as there is a tax exemption of Rs 10,000 on interest earned on savings bank accounts. Here are a few savings account with the highest interest rates.
IDFC First Bank
IDFC First Bank offers an interest rate of 7 per cent on balances above Rs 1 lakh to Rs 1 crores. If your balance in the savings account dips to below Rs 1 lakh, the bank offers an interest rate of 6 per cent.
The above interest rates on savings bank account are fantastic and actually compare with fixed deposits of other commercial banks.
The savings account also offers a free visa debit card for life, free airport lunge access every quarter and minimal and transparent charges. One is also allowed to do free ATM transactions across any network.
Yes Bank
Yes Bank offers an interest rate of 6 per cent, where the balances in the account are over and above Rs 1 lakh. This is not bad at all considering the fact that State Bank of India offers just 6.5 per cent on its fixed deposits and there is no tax break on interest income up to Rs 10,000.
If your balance is in excess of Rs 1 crores, the interest offered is 6.25 per cent. For balances in the savings account of less than Rs 1 lakh, the interest offered is just 5 per cent. Government banks presently offer an interest rate of 3.5 per cent on balances in the SB account.
IndusInd Bank
IndusInd Bank offers an interest rate of 4 per cent, for daily balance up to Rs 1 lakh, while the interest rate moves higher to 5 per cent, when the daily balance is above Rs 1 lakh to Rs 10 lakh. For daily balances above Rs 10 lakh, the interest offered is 6 per cent.
While the interest rate of IndusInd Bank maybe on par with Yes Bank at 6 per cent, for Yes bank the balance required to get this interest of 6 per cent is just Rs 1 lakh and above, while for IndusInd Bank it is 10 lakh and above.
There are various other benefits that the bank offers from time to time and one should check with the bank for further details.
Jana Small Finance Bank
While all of the above are full-fledged commercial bank, Jana Small Finance Bank as the name suggests is a small finance bank.
If you maintain a balance of a sum of below Rs 1 lakh, Jana Small Finance Bank offers an interest rate of 5 per cent, while for a sum above Rs 1 lakh to Rs 10 lakh, the interest rate offered is 6 per cent. If you maintain balance above Rs 10 lakhs to Rs 5 crores, the interest rate offered is 7 per cent.
Conclusion
Keeping balances in the savings account when the interest rates are high makes sense, as there is a tax exemption of Rs 10,000 on interest earned on savings bank accounts. Here are a few savings account with the highest interest rates.
