You can open a savings account in any bank across India with authentic details. Once the account is opened, you can use it for several online and offline services. In this article, we will talk about the benefits that you can get by opening a savings account.
Multiple benefits of opening a savings account
Safety
Safety is the main thing when handling your money, among other things. A savings account not only provides you security but gives you an opportunity to earn interest.
Funds for emergency
Many financial professionals advise clients to use savings accounts to store money and advise them to have six months to a year's worth of expenses in reserve. It's crucial to keep your money in a savings account where you can earn respectable return on your contributions. You can use the money you accumulate as you need it to deal with emergencies.
Easy Access to Money
It is under the category of liquid investment that can be turned into cash. Therefore, in addition to receiving interest on the amount placed, you have simple access to your money whenever you need it. You enjoy the freedom to have direct access to your own money.
Multiple Facilities in one Account
Your savings account is like a bank in your pocket. You can use it at home or at work through a laptop or a mobile phone. If you are not digitally adept, then don’t worry that the savings account also offers offline benefits. Some additional features of your savings accounts include the ability to open a fixed deposit account, use a locker, and apply for any loan you qualify for.
Banks offering high rates of interest on savings accounts
Here are a few banks from both the public and private sectors that provide greater interest on savings accounts;
Data as on the website of the relevant bank as of October 11, 2022;
All mentioned (BSE) Public & Private Banks' Savings Account Interest Rates were taken into consideration when compiling the statistics. In each category, the top five banks that pay the highest interest on savings accounts are given; banks whose websites do not provide data are not taken into account.
PUBLIC SECTOR BANKS
Bank name: Union Bank
Interest rate: 2.75%-3.55%
Minimum Balance Requirement: Rs 250- Rs 1000
Balance Type: QAB
Canara Bank
Interest rate: 2.90%-3.55%
Minimum Balance Requirement: Rs500-1000
Balance Type: MAB
Bank of Baroda
Interest rate: 2.75%-3.35%
Minimum Balance Requirement: Rs500-2000
Balance Type: QAB
Punjab & Sind Bank
Interest rate: 2.80%-3.00%
Minimum Balance Requirement: Rs500-1000
Balance Type: MB
Bank of India
Interest rate: 2.75%%-2.90%
Minimum Balance Requirement: Rs500-1000
Balance Type: AQB
PRIVATE SECTOR BANKS
DCB Bank
Interest rate:2.25%-7%
Minimum Balance Requirement: Rs 2500-5000
Balance Type: MB
Bandhan Bank
Interest rate: 3%-6.5%
Minimum Balance Requirement: Rs5000
Balance Type: MAB
IDFC First Bank
Interest rate: 4%-6.25%
Minimum Balance Requirement: Rs10,000
Balance Type: AMB
RBL Bank
Interest rate: 4.25%-6.25%
Minimum Balance Requirement: Rs2500-5000
Balance Type: AMB
Yes Bank
Interest rate: 4%-6.25%
Minimum Balance Requirement: Rs10000-25000
Balance Type: AMB
SMALL FINANCE BANKS (SFBs)
AU Small Finance Bank
Interest rate: 3.5-7%
Minimum Balance Requirement: Rs2000-5000
Balance Type: AMB
Equitas Small Finance Bank
Interest rate: 3.5%-7%
Minimum Balance Requirement: Rs 2500-10000
Balance Type: AMB
Ujivan Small Finance Bank
Interest rate: 3.5%-7%
Minimum Balance Requirement: NIL
Suryoday Small Finance Bank
Interest rate: 4%-6.25%
Minimum Balance Requirement: Rs2,000
Balance Type: AMB
AMRV stands for average monthly relationship value; AQB stands for average quarterly balance, AMB for average monthly balance, MAB for average monthly balance, QAB for average quarterly balance, MMB for minimum monthly balance, MB for minimum balance, and YPA for youth plus account.
According to the highest range of interest rates they give, banks in each category are listed in descending order. The type of the savings account, the balance kept in it, and any other applicable terms and conditions may affect the interest rate.
