A few savings accounts are operated by most salaried citizens. As they use one savings account for managing monthly expenses while the other one is considered as a salary account and used for personal finance. In general, savings bank accounts bear lower returns than fixed deposits of banks or NBFCs. Compared to the largest private banks, there are some small and new private banks which offer higher interest on savings accounts. There are now two private banks promising more than 7 percent return on savings account despite declining interest rates, and they are Bandhan Bank and IDFC First Bank, which pay interest rates on their savings accounts of up to 7.15% and 7%, respectively. Whereas interest rates are similar to those provided by small finance banks such as AU Small Finance Bank and Ujjivan Small Finance Bank, for example, give up to 7 percent and 6.5 percent interest rates, respectively.
Compared to leading private and large public sector banks, these interest rates are much higher. For example, on their savings account HDFC Bank and ICICI Bank fetch an interest rate of 3 to 3.5 percent, whereas the State Bank of India (SBI) and Bank of Baroda are currently fetching 2.70 and 2.75 percent interest respectively.
Check The Below Table For Details
|Sr No.||Banks||ROI per annum in %||Min balance limit|
|1||Bandhan Bank||3 to 7.15||Rs 5000|
|2||IDFC First Bank||3.5 to 7||Rs 10,000|
|3||RBL Bank||4.75 to 6.75||Rs 500 to Rs 2500|
|4||IndusInd Bank||4 to 6||Rs 1500 to Rs 10,000|
|5||Yes Bank||4 to 5.5||Rs 2500 to Rs 10,000|
|6||DCB Bank||3.25 to 5.5||Rs 2500 to Rs 5000|
|7||Karnataka Bank||2.75 to 4.5||Rs 1000 to Rs 2000|
|8||City Union Bank||3.5 to 4||Rs 7500|
|9||Axis Bank||3 to 4||Rs 2500 to Rs 10,000|
|10||Kotak Mahindra Bank||3.5 to 4||Rs 2000 to Rs 10,000|
Minimum and maximum deposit limit
With a minimum deposit amount of Rs 500 up to a limit of Rs 10,000, one can open and manage a savings account. Opposed with public sector banks, this is maintained higher by the banks because they are more involved in heading out with their services to the salaried and self-employed individuals. The minimum balance threshold at IDFC First Bank and Bandhan Bank is Rs 10,000 and Rs 5,000 whereas the minimum balance threshold is Rs 2,500 to Rs 10,000 for leading private banks, such as Axis Bank and HDFC Bank respectively.
It's essential to have knowledge about how much interest the banks pay to hold the funds in the savings account. A stronger interest in savings accounts will be a benefit if you first go for a bank with a stellar track record, strong customer values, a large branch network and country-wide ATM facilities.