Now Earn up to 7% Interest on Your Savings Account; Know How

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.