In India, there is a range of both public sector and private sector banks and each bank basically has a specific interest rate for a savings account which typically ranges from 3.5 per cent p.a to 7 per cent p.a. For beginner investors, a savings account is among the ideal choice of investment. Individuals who have a stable income and want to gradually build their investment portfolio are perfectly suits for a savings account.
Several banks in India provide the facility of different forms of Savings Accounts that are tailored to fulfill the needs of an individual. But before opening a savings account you must give serious consideration about how much interest is offered by a particular bank for leaving your funds in a savings account. By keeping this in mind we have categorized top 10 banks offering higher interest rates on a savings account, that are listed below:
1. IDFC First Bank
IDFC FIRST Bank's Savings Account offering interest rates at 7% per annum for the balance amount of Rs 1 lac+ starting at a fixed interest rate of 6% p.a. Apart from this, an investor can also experience amazing cashback, airport lounge access, unlimited ATM withdrawals and more with his / her savings account.
2. RBL Bank
Interest in the RBL Bank savings account up to Rs. 1 Lakh is calculated at 4.75%, for Rs. 1 Lakh up to Rs. 10 Lakhs at 6.00% and for Rs. 10 Lakhs up to Rs. 5 Cr at 6.75%.
3. Au Small Finance Bank
This Indian commercial bank is offering a 4.00% interest rate for balance amount less than Rs.1 lakh, 5.00% for balance amount between Rs 1 lac to 5 lacs, 6.00% for balance amount between Rs 5 lac to 10 lacs, 7.00% for balance amount between Rs 10 lacs to Rs 5 crores and 6.50% for balance amount between Rs.5 crores up to Rs.10 Crores.
4. Bandhan Bank
Bandhan bank offers multiple types of savings account with higher interest rates. Currently, it has a rate slab of 4.00% for balance up to Rs 1 lac, 6.00% for Rs. 1 Lac to 10 crores, 6.55% for above 10 crores to 50 crores, and 7.15% above 50 crores.
5. IndusInd Bank
Opening a savings account in IndusInd Bank will fetch an interest rate of 4.00% for balance up to Rs 1 lakh, 5.00% for Rs. 1 Lakh up to Rs. 10 lakhs, and 6.00% for above Rs.10 Lakhs. Interest is paid on a quarterly basis on 30th June, 30th September, 31st December and 31st March.
6. Ujjivan Small Finance Bank
Interest Rates for Domestic and Non-Resident accounts are 4.00% for balance amount Rs.1 lakh, 5.00% for Rs.1 Lakh to 5 Lakh, 5.25% for Rs.5 lakhs to 50 lakhs, 6.25% for Rs.50 lakhs to 5 crores and 6.50% for above Rs 5 crores.
7. Lakshmi Vilas Bank
Lakshmi Vilas Bank Limited savings account interest rates calculated and paid out on incremental balances for the given slabs. 3.25% for balance up to Rs.1 lakh, 3.50% for Rs.1 Lakh up to Rs.5 Lakhs, 3.75% for Rs.5 Lakhs up to Rs.25 Lakhs, 4.25% for Rs.25 Lakhs to Rs.10 Crores, and 5.75% for above Rs.10 Crores.
8. DCB Bank
DCB Bank is one of the major commercial banks providing its customers with the facility to open various forms of Savings Accounts. The bank provides competitive interest rates on a savings account. Currently, customers can enjoy an interest rate of 3.25% to 5.5% per annum on their account.
9. HDFC Bank
Rate of Interest for HDFC Bank savings account deposits are revised as 3.00% for below Rs.5 lakh and 3.50% for Rs. 50 lakh and above. The interest rate is calculated on the daily balances retained in the account.
10. South Indian Bank
This private sector bank headquartered in Kerala offers competitive interest rates on a savings account (including NRO/NRE accounts) which are: 2.35% for balance amount up to Rs 2 lakh, 2.75% for Rs. 2.00 lakh up to 5 crores, 4.20% for 5.00 crore up to Rs. 100.00 crore and 4.60% for Rs. 100.00 crore and above.