Saving Account Interest Rates
Savings Account Interest
| Bank Name | Savings Account Rates | Minimum Balance |
|---|---|---|
| Yes Bank | 4.00% - 5.50% | Customized Account: Rs. 10,000, Yes First: Nil, Yes Primia: Rs. 2 Lakh |
| DBS Bank | 3.00% - 4.00% | Average Monthly Balance of Rs. 5000 |
| SBI | 2.70% | NIL |
| HDFC Bank | 3.00% - 3.50% | Rs. 10,000 for metro Urban branches Rs. 5,000 For Semi Urban branches Rs. 2,500 for Rural branches is required to open a Savings Regular Account |
| ICICI Bank | 3.00% - 3.50% | Rs. 10,000 in metro and Urban locations, Rs. 5,000 in Semi Urban and Rs. 2,000 in Rural locations |
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Top Bank Interest Rates on Saving Account Comparison, Nov 2021
| Bank Name | Interest Rate | Minimum Amount |
|---|---|---|
| Yes Bank | 4.00% - 5.50% | Customized Account: Rs. 10,000, Yes First: Nil, Yes Primia: Rs. 2 Lakh |
| DBS Bank | 3.00% - 4.00% | Average Monthly Balance of Rs. 5000 |
| SBI | 2.70% | NIL |
| HDFC Bank | 3.00% - 3.50% | Rs. 10,000 for metro Urban branches Rs. 5,000 For Semi Urban branches Rs. 2,500 for Rural branches is required to open a Savings Regular Account |
| ICICI Bank | 3.00% - 3.50% | Rs. 10,000 in metro and Urban locations, Rs. 5,000 in Semi Urban and Rs. 2,000 in Rural locations |
| Axis Bank | 3.50% - 4.00% | NIL |
| Citibank | 2.50% | Rs. 25,000 |
| Kotak Bank | 3.50% | Rs. 5,000 |
| Bank of Baroda | 2.75% - 3.20% | QAB Rs. 500 and Rs. 1,000 for Rural and Urban respectively. Zero balance facility only for salaried employees in Central/ State Govt. Public and Private Limited Companies, Agents of Life and General Insurance Corporations and Students |
| India Post Office | 4.00% | Rs. 500 |
| Standard Chartered Bank | 0.50% - 3.25% | NIL |
| PNB | 2.90% | Rs. 500 to 1,000 |
| South Indian Bank | 2.35% - 4.50% | N.A |
| IDBI Bank | 3.00% - 3.35% | Rs. 5,000 Metro and Urban, Rs. 2,500 Semi Urban, Rs. 500 Rural |
| Andhra Bank | 2.90% | Rs. 150 |
| Indian Bank | 2.90% | Rs. 250 for non cheque operation and Rs. 500 for cheque operation |
| Canara Bank | 2.90% - 3.20% | Rs. 1,000 for Metro, Urban and Semi Urban branches and Rs. 500 for Rural branches |
| UCO Bank | 2.50% | AQB ranges between Rs. 250 and Rs. 1,000 |
| ESAF Small Finance Bank Regular Saving Account | 4.00% - 7.00% | Rs. 1,000 |
| AU Small Finance Bank Samarth Saving scheme | 3.50% - 7.00% | Rs. 5,000 |
| Equitas Small Finance Bank Regular Saving Account | 3.50% - 7.00% | N.A |
| Jana Small Finance Bank Regular Saving Account | 3.50% - 7.25% | Rs. 2,500 |
| Ujjivan Small Finance Bank Ujjivan Bank Regular Savings Account | 4.00% - 7.00% | N.A |
Savings Account Interest
Savings Account Interest Calculator
As per the RBI mandate, Interest is calculated on a daily basis on your closing balance of savings account. However, interest on savings account can be paid monthly, annually or quarterly. Banks use the following formula for calculating interest on savings accounts.
Interest = Amount (Daily balance)*(No of days)* Interest/Days in the year.
The example below explains the method to calculate interest on a savings account on a daily basis.
Illustration: Mr. A has ₹ 2,00,000 in his savings account from 1st June to 26th June of a year. On 26th June, he withdrew 1,80,000. What will be the total interest amount earned @ rate of 4% in the month calculated on a daily basis?
Interest for 26 days = 2,00,000 * 26 * (4/100)*365 = ₹ 569
Interest of 4 days = 20,000 * 4 * (4/100) * 365 = ₹ 8.76
Total interest earned during the month at the rate of 4% p.a. calculated on a daily basis is ₹ 577.76 (₹ 569 + ₹ 8.76)
Highest Banking Interest Rates
The table below mentions the highest interest savings account with the best bank for savings accounts.
| Bank Name | Interest Rate | Minimum Balance |
|---|---|---|
| Jana Small Finance Bank | 3.50% - 7.25% | Rs. 2,500 |
| AU Small Finance Bank | 3.50% - 7.00% | Rs. 5,000 |
| ESAF Small Finance Bank | 4.00% - 7.00% | Rs. 1,000 |
| Equitas Small Finance Bank | 3.50% - 7.00% | N.A |
| Ujjivan Small Finance Bank | 4.00% - 7.00% | N.A |
| Yes Bank | 4.00% - 5.50% | Customized Account: Rs. 10,000, Yes First: Nil, Yes Primia: Rs. 2 Lakh |
| South Indian Bank | 2.35% - 4.50% | N.A |
| Axis Bank | 3.50% - 4.00% | NIL |
| DBS Bank | 3.00% - 4.00% | Average Monthly Balance of Rs. 5000 |
| India Post Office | 4.00% | Rs. 500 |
| HDFC Bank | 3.00% - 3.50% | Rs. 10,000 for metro Urban branches Rs. 5,000 For Semi Urban branches Rs. 2,500 for Rural branches is required to open a Savings Regular Account |
| ICICI Bank | 3.00% - 3.50% | Rs. 10,000 in metro and Urban locations, Rs. 5,000 in Semi Urban and Rs. 2,000 in Rural locations |
| Kotak Bank | 3.50% | Rs. 5,000 |
| IDBI Bank | 3.00% - 3.35% | Rs. 5,000 Metro and Urban, Rs. 2,500 Semi Urban, Rs. 500 Rural |
| Standard Chartered Bank | 0.50% - 3.25% | NIL |
| Bank of Baroda | 2.75% - 3.20% | QAB Rs. 500 and Rs. 1,000 for Rural and Urban respectively. Zero balance facility only for salaried employees in Central/ State Govt. Public and Private Limited Companies, Agents of Life and General Insurance Corporations and Students |
| Canara Bank | 2.90% - 3.20% | Rs. 1,000 for Metro, Urban and Semi Urban branches and Rs. 500 for Rural branches |
| Andhra Bank | 2.90% | Rs. 150 |
| Indian Bank | 2.90% | Rs. 250 for non cheque operation and Rs. 500 for cheque operation |
| PNB | 2.90% | Rs. 500 to 1,000 |
| SBI | 2.70% | NIL |
| Citibank | 2.50% | Rs. 25,000 |
| UCO Bank | 2.50% | AQB ranges between Rs. 250 and Rs. 1,000 |
How MyLoanCare Helps to Compare Savings Account Interest Rates
With MyLoanCare, you can easily compare savings account interest rates of top banks in one place without any hassle. It constantly researches the savings account offers of all key lenders in the market and feeds the detailed saving interest rate, minimum balance required, and other parameters. You can also easily find a detailed bank savings interest rate comparison of top banks and payment banks to choose the best savings account rate.
List of Payments Bank Savings Account Interest Rate and Minimum Balance
| Payments Bank | Minimum Balance | Interest Rate |
|---|---|---|
| Paytm | NIL | 2.75% |
| Airtel Payments Bank Ltd | NIL | 6% |
| India Post Payment Bank | NIL | 2.75% |
| FINO Payments Bank | NIL | 2.75% |
List of Banks with Zero Balance Savings Account with Interest Rates
| Bank Name | Interest Rate |
|---|---|
| Axis Bank | 3.50% - 4.00% |
| Standard Chartered Bank | 0.50% - 3.25% |
| SBI | 2.70% - 2.70% |
Know More About Savings Account
Latest News about Payment Banks
FAQs
✅Is savings account interest taxable?
Yes, savings account interest is taxable. Under section 80 TTA of the income tax act, savings account interest up to ₹ 10,000 accrued during a year is tax free.
✅How do interest rates on savings accounts work?
Interest rates on savings accounts are calculated on the average balances in the account on a daily basis. This interest is however paid monthly, annually or quarterly as per the policy of the bank. The interest on savings accounts may be affected if one does not maintain the minimum balance requirement of the bank.
✅Which bank has the best interest rate for savings?
Presently, Equitas Small Finance Bank, Jana Small Finance Bank provides interest rate upto 7.25% and thus has best interest rate for savings. Apart, some best zero balance savings accounts with the highest rate are 4.00%, 3.25%, 2.70%.
✅What is the average interest rate on a savings account?
Earlier interest rates on savings accounts were fixed at 4.00% per annum. However, the rates were deregulated by RBI in 2011, and now banks are allowed to fix their own savings interest rates. As a result of deregulation, the savings interest rates offered by banks in India today range from 0.50% to 7.25%.
✅Can DEMAT account be opened with savings account?
Yes, you can open a DEMAT account can along with a Savings account. DEMAT accounts are required to trade in various stock market instruments and they have different charges from the savings account.
- 2021-11-24 : SBI Clarifies about Breach in RBI Regulations
State Bank of India has clarified that savings account holders of SBI do not need to pay any charges for digital transactions including any fees for transactions using Unified Payment Interface (UPI) and RuPay debit cards. - 2021-11-23 : ICICI Bank Launches New Online Platform
ICICI Bank has launched a new online platform for exporters and importers known as Trade Emerge. The platform also offers online banking services for savings and current account holders. - 2021-11-22 : SBI to Refund Rs 164 Crore to Jan Dhan Account Holders
State Bank of India is yet to issue the refund of Rs 164 crore, the undue fee charged from Jan Dhan account holders. The bank collected over Rs 254 crore towards at least 14 crores UPI/ RuPay transactions by charging Rs 17.70 per transaction on BSBDA (Basic Savings Bank Deposit Account) customers under the Pradhan Mantri Jan Dhan Yojana (PMJDY). - 2021-11-18 : Bank Credit Grows At 7.14 percent And Deposits 11.4 percent
According to the RBI, bank credit has grown to 7.14% and deposits 11.4%. Bank loans stood at Rs 104.19 lakh crore and deposits at Rs 144.03 lakh crore. In the previous fortnight ended October 2021, bank credit had grown by 6.84 per cent and deposits by 9.94 per cent. - 2021-11-17 : Indian Overseas Bank Lowers Yearly Profit
State-owned Indian Overseas Bank has reported a downward profit of Rs 646 cr for 2020-21. The profit is after reporting a divergence in asset classification and provisioning for bad loans.
