Multiple bank accounts are operated by most of us in today's generation in order to cover salary deposits and investments from one account and to pay monthly expenses, credit card outstanding, reimburse loan instalments or any from another account. However, savings bank accounts bear lower interest rates relative to those on fixed deposits, most of us prefer savings accounts in order to park our emergency savings. Compared to leading private and public sector banks, there are some small and new private banks which promise higher interest on savings accounts. It's better to understand deeply about how much interest the banks pay to leave your funds in the savings account.
Some of the private sector banks such as Bandhan Bank and IDFC First Bank are currently providing interest rates on their savings accounts of up to 7.15 per cent and 7 per cent, respectively. Interest rates are almost close to those offered by small finance banks. AU Small Finance Bank and Ujjivan Small Finance Bank, for example, offer 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 on savings accounts. For example, HDFC Bank and ICICI Bank offer 3 to 3.5 percent interest, whereas the State Bank of India (SBI) and Bank of Baroda offer 2.70 and 2.75 percent interest rate.
|Banks||ROI per annum||Minimum balance limit|
|Bandhan Bank||3% to 7.15%||Rs.5000|
|IDFC First Bank||3.5% to 7%||Rs.10,000|
|RBL Bank||4.75% to 6.75%||Rs.500 to Rs 2,500|
|Yes Bank||4% to 6%||Rs.10,000|
|IndusInd Bank||4% to 6%||Rs.1,500 to Rs.10,000|
Minimum and maximum balance threshold
In private bank savings accounts the minimum balance prerequisite starts at Rs 500 up to a maximum of Rs.10,000. Particularly in comparison with public sector banks, this is kept higher by the banks because they are more focused in delivering their services to the salaried middle class and self-employed individuals. The minimum balance requirement at IDFC First Bank and Bandhan Bank is Rs 10,000 and Rs 5,000 respectively whereas the same minimum and maximum balance requirement is Rs 2,500 to Rs 10,000 for leading private banks, such as Axis Bank and HDFC Bank.
Before only considering interest rates you must opt for a bank that has a diverse branch network and city-wide ATM services, long-term stellar record, and excellent service standards. A minimum balance threshold for regular savings accounts is taken into consideration and not for the basic savings bank deposit account in general.