A savings account is known as one of the oldest and most common forms of account. The question is- why do people prefer savings accounts over others? The answer is simple. Savings accounts are more preferable because no matter how much interest you earn, the principal amount will always remain safe.
However, you must know how much interest rates your bank account offers. With the best savings account interest rates, you can earn more on your savings and there’s no harm in it. In case you don’t know which bank offers the best and highest interest rate, then keep reading this blog. You will get to know the answer soon!
If you want to know more about how to open savings bank accounts, then do check out our blog. You can read it here.
Below are the interest rate and features of various banks providing savings account in India:
The State Bank of India offers a very minimal interest rate of 2.75% per annum. However, it provides a number of facilities to its customers that are as follows:
Auto sweep facility available
ATM cum Debit card
Special salary accounts
Personal accident and health insurance cover
You can opt for banking services through just a missed call
Internet banking and mobile facility are also available
Safe deposit lockers as per availability
E-statement and SMS alert facility
ICICI Bank offers an interest rate of 3.00% - 3.50% per annum which is slightly more than the SBI. Other features of ICICI Bank’s saving account are as follows:
24*7 Banking service available
You can choose your own account number
You can also avail the facility of mobile banking and contactless mobile payments
Added advantages with ICICI EPF account can also be availed
The interest rates offered by HDFC bank range from 3.00% - 3.50% per annum. Other facilities provided by HDFC banks are as follows:
Safe deposit lockers provided
Customized banking service
Various offers and discounts on online shopping
For the first year, no annual maintenance charges
Union Bank of India offers a 3% interest rate per annum. However, it offers various exciting features with its saving account.
The interest rates of Axis Bank range from 3.00% - 4.00% per annum. Apart from that, you can have various other advantages with the savings account in Axis Bank. They are:
Instant Account Number
Zero balance account
Free online debit card/optional physical debit card
For balances above ₹10,000, the auto FD feature is available
2 months free subscription of Airtel Wynk, ₹ 1,000 cashback on Cleartrip App, ₹150 discount on BookMyShow
Preferential pricing on De-Mat and Lockers
The biggest features of Axis Bank savings account is that you can do unlimited ATM transactions at all Axis Bank and other bank’s ATM.
Bank of India offers a minimal interest rate of 2.90% per annum. However, it does offer some quite interesting features on its savings account.
Unlimited ATM transactions but only at BOI ATMs
Internet Banking facility
Online ITR (Income Tax Return) filing facility
Free utility bills payment facility through Epay
Personalized cheque book issued on request
The interest rate of Canara Bank varies from 2.90% - 3.20% per annum. Canara Bank offers the following facilities to its customers.
Passbook or pass sheet
Instant Credit of Outstation Cheque up to ₹15,000
Mobile & Internet banking, more.
Central Bank of India offers an interest rate of 2.75% - 3.00% per annum. Although it’s quite minimal, it does offer some interesting features to its savings account holders. They are as follows:
Minimum balance of ₹50
An initial deposit of just ₹50 is required to open an account
50 withdrawals per year free of charge
One cheque book per year of charge
Balance in the account should not exceed ₹50,000 in all accounts taken together
Total credits in a year should not exceed ₹1,00,000
Apart from the aforementioned banks, there are a plethora of other banks in India that let you open savings accounts with good interest rates. Some of them include AU Finance Bank with an interest rate of 4.00% - 7.00% per annum, Bandhan Bank offers an interest rate of 3.00% - 7.15% per annum, and more.
In case you wish to know more about the interest rates of banks other than those mentioned above, then leave a comment below. We will get back to you soon!