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SBI vs HDFC vs ICICI vs Axis vs PNB vs BoB: Savings Account Interest Compared
An interest-bearing savings account is a useful product to consider as the first step towards your personal finance for short-term investors who wish to have some emergency funds with enough liquidity. A savings account not only pays interest on your deposits but also allows you to withdraw funds at any time, allowing you to meet unexpected expenses. One thing to keep in mind is that interest on a savings account is taxed under the heading "Income from other sources."
However, Section 80TTA allows a deduction of up to Rs 10,000 on such interest income, hence interest generated in excess of Rs 10,000 is taxable in the hand of the depositor. According to the RBI, interest on a savings account is determined daily based on your end-of-day balance, and the bank pays the interest on a quarterly basis. Deposits in a savings account, like fixed deposits, are insured by the DICGC, enhancing the capital safety of a risk-averse investor. For anyone looking to open a savings account, we've compiled a list of India's largest banks and compared their savings account interest rates.
State Bank of India
Customers of the country's largest lender, State Bank of India (SBI), can open a savings account with a variety of features, including mobile banking, SMS alerts, internet banking, YONO, State Bank Anywhere, and SBI Quick Missed Call. In addition, the bank offers the first ten cheque leaves for free each fiscal year. Free withdrawals are restricted based on the Monthly Average Balance (MAB). SBI offers the ability to transfer accounts using the Internet Banking channel. The bank allows zero Monthly Average Balance and there is no maximum balance restriction. The following are the applicable interest rates on savings bank deposits as of May 31, 2020.
| Savings Bank deposit slabs | Existing Rate of Interest | Revised Rate of Interest w.e.f. 31.05.2020 |
|---|---|---|
| SB Deposit accounts with balances upto Rs. 1 lakh | 2.75% p.a | 2.70% p.a. |
| SB Deposit accounts with balances above Rs. 1 lakh | 2.75% p.a. for balance upto Rs. 1 lakh, 2.75% p.a. for balance above Rs. 1 lakh. | 2.70% p.a. for balance upto Rs. 1 lakh, 2.70% p.a. for balance above Rs. 1 lakh |
| Source: Bank Website |
HDFC Bank
Regular savings accounts with HDFC Bank come with unique discounts and benefits. With a Regular Savings Account, the bank provides a Safe Deposit Locker and a Millennia Debit Card (metro/urban locales) or a MoneyBack Debit Card (semi-urban & rural regions). For your initial Demat Account, the Annual Maintenance Charge (AMC) is waived for the first year by the bank on the opening of a new savings account. The rate of interest for savings bank deposit accounts has been updated as follows, effective February 2, 2022.
| Savings Balance (Rs) | Interest Rate p.a |
|---|---|
| Less than Rs. 50 Lakh | 3.00% |
| Of and above Rs 50 Lakh to less than Rs 1000 Cr | 3.50% |
| Of and above Rs 1000 Cr | 4.50% |
| Source: Bank Website |
ICICI Bank
ICICI Bank offers a standard account called the 'Insta Save Account,' which has a number of advantages. With the iMobile Pay App, you'll have access to banking services 24 hours a day, seven days a week. You can also get a Platinum Debit Card and earn reward points on your transactions. Video KYC can be used to open the account, and with effect from June 4, 2020, the relevant savings account interest rate will be:
| For end of day balance below ₹50 Lakhs | For end of day balance of ₹50 lakhs and above |
|---|---|
| 3.00% | 3.50% |
| Source: Bank Website |
Axis Bank
Customers of Axis Bank may choose from a variety of Savings Accounts, each with its own set of services and perks such as high transaction limit, free cheque books, and so on. A savings account's interest rate is calculated daily and credited to the account on the first day of the next quarter. The rate of interest will be determined by the account balance. It is now hovering between 3% and 3.5 percent. The interest rate on your savings account has been updated as of April 1, 2021, according to the following interest rate table.
| Balance Slabs | Applicable Rate of Interest w.e.f. 01st Apr, 2021 |
|---|---|
| Less than INR 50 Lacs | 3.00% p.a. |
| INR 50 Lacs and up to less than INR 10 Crs | 3.50% p.a. |
| INR 10 Crs and up to less than INR 100 Crs | Repo + (-0.65%) Floor rate of 3.50% applicable |
| INR 100 Crs and up to less than INR 200 Crs | Repo + (-0.50%) |
| INR 200 Crs and up to less than INR 2,500 Crs | Repo + (-0.50%) |
| Source: Bank Website |
Punjab National Bank (PNB)
The public sector lender Punjab National Bank (PNB) offers a range of saving accounts such as PNB Unnati Saving Fund Account, PNB Saving Account For Premium Customers, PNB SF Prudent Sweep Deposit Scheme, PNB SF Prudent Sweep For The Accounts Of Institutions, PNB Junior Sf Account, Basic Saving Bank Deposit Account (BSBDA), PNB Rakshak Scheme, Scheme For Providing Overdraft Facility To Pensioners, PNB Power Savings, PNB Samman Saving Account, PNB MySalary Account, Premium Saving Account PNB Best Customer, PNB Pratham Savings Account, PNB 'Select' Savings Account. Interest Rates on Domestic and NRI Savings Accounts: (W.E.F. 16th February 2022) are as follows:
| Balance slabs | Rate Of Interest |
|---|---|
| Saving Fund Account Balance below Rs.10 Lakh | 2.75% p.a. |
| Saving Fund Account Balance of Rs.10 Lakh & above | 2.80% p.a. |
| Source: Bank Website |
Bank of Baroda
The public sector lender Bank of Baroda (BoB) offers a range of savings account options to the customers such as Baroda Advantage Saving Account, Salary and Pension Solutions for Indian Military Personnel, Salary and Pension Solutions for Indian Central Forces, Baroda Police Forces Salary Package, Salary and Pension Solutions for Central/ State Govt. employees, Baroda Salary Classic Account, Baroda Super Salary Account, Baroda Salary Premium Account, Baroda Salary Privilege, Baroda Champ Account, Super Savings Account, Baroda Jeevan Suraksha Saving Account, Government Savings Account (Baroda Gov Bodies SB Account), Baroda SB Self Help Group, Baroda Mahila Shakti Saving Account, Baroda Pensioners Savings Bank Account, Baroda Platinum Saving Bank Account, and Baroda Senior Citizen Privilege Scheme. Revised rate of interest on saving bank deposits (w.e.f 25/02/2022) are as under:
| SB deposits outstanding Balance | Revised Interest Rates w.e.f 25/02/2022 |
|---|---|
| Up to o/s Rs. 1.00 lakh | 2.75% |
| Above Rs 1.00 Lakh to less than Rs 100 Crores | 2.75% |
| Rs.100 Crore and above to less than Rs.200 Crores | 2.85% |
| Rs 200 crores and above to less than Rs 500 crores | 3.05% |
| Rs 500 crores and above to less than Rs 1,000 crores | 3.25% |
| Rs 1,000 crores and above | 3.30% |
| Source: Bank Website |
