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5 Best Savings Accounts With Interest Rates Up To 7.15%
A savings account is a standard bank account that lets you make deposits, keep it secure, and withdraw it while earning interest. A tiny handful of withdrawals, cheque book facility, linked debit card facilities, restricted transfer options, and so on are all key factors of a savings account. Savings accounts typically pay compound interest rates which are lower than that of fixed deposits. Despite the fact that these accounts usually pay a low interest rate, their safety makes them an excellent choice for preserving capital for potential needs. If you want to open a savings account in the current turbulent time then here are the 5 banks that are currently fetching best interest rates and most of them are also higher than the interest rates of fixed deposits of leading banks.
Top 5 Private Banks With Higher Interest Rates On Savings Accounts
Here are the top 5 private sector banks which are currently higher interest rates on savings accounts. The interest rates are subject to the minimum and maximum deposit amount.
| Banks | Interest Rates | W.e.f. |
|---|---|---|
| Bandhan Bank | 3.00% to 7.15% | 07.09.2020 |
| RBL Bank | 4.50% to 6.25% | May 7, 2021 |
| IndusInd Bank | 4.00% to 6.00% | April 26, 2021 |
| Yes Bank | 4.00% to 5.50% | 08.12.2020 |
| DCB Bank | 3.25% to 5.50% | 17.06.2020 |
| Source: Bank Websites |
Top 5 Public Sector Banks With Higher Interest Rates On Savings Accounts
Below we've curated a list of the top 5 public sector banks that are currently offering the best savings account rates.
| Banks | Interest Rates | W.e.f. |
|---|---|---|
| Punjab National Bank | 3.00% to 3.50% | March 1, 2021 |
| IDBI Bank | 3.00% to 3.40% | May 1, 2021 |
| Canara Bank | 2.90% to 3.20% | 28.09.2020 |
| Bank of Baroda | 2.75% to 3.20% | 12.02.2021 |
| Punjab & Sind Bank | 3.10% | 12 November, 2020 |
| Source: Bank Websites |
Top 5 Small Finance Banks With Higher Interest Rates On Savings Accounts
Below we've compiled a list of the top 5 small finance banks with the highest savings account rates right now.
| Banks | Interest Rates | W.e.f. |
|---|---|---|
| Ujjivan Small Finance Bank | 4.00% to 7.00% | 6th March, 2021 |
| AU Small Finance Bank | 3.50% to 7.00% | May 17, 2021 |
| Equitas Small Finance Bank | 3.50% to 7.00% | April 1, 2021 |
| Fincare Small Finance Bank | 3.00% to 7.00% | April 1, 2021 |
| Jana Small Finance Bank | 3.00% to 6.75% | 06.05.2021 |
| Source: Bank Websites |
How interest earned from a savings account is taxed?
Your savings account interest falls under the category of income from other sources, and then your net income is taxed as per the applicable tax bracket. Individuals and HUFs are eligible for the deduction under section 80TTA, but companies and firms are not. Interest earned on all savings accounts kept in post offices, banks, or co-operative banks is eligible for a maximum deduction of Rs 10,000. Interest received in excess of Rs 10,000 from any of these streams is taxable. Those who are 60 years old or older can seek a maximum deduction of Rs 50,000 on interest income under section 80TTB.
