Usually Banks offer very negligible rate of interests against savings accounts but you can not get away without having a savings bank account for low rate of interest.
Corona virus pandemic has caused an economic crisis throughout the country. Lockdown has been imposed as the ultimate prevention of the pandemic which subsequently has affected the entire Indian markets. Thousands of people have been left jobless, a large number of trades were compelled to shut down. Accordingly, Indian Banks have also reduced their rate of interest against savings deposits.
However, there are still some banks who are offering interest at the rate of 7% against savings accounts. Out of these banks some are of relatively small size and some are relatively new. Even the small finance banks are offering higher rate of interests. Let us know about such banks.
As per data collected by bankbazaar.com there are at least 10 banks who are offering better interest rates to their consumers. These are all private and small banks including 2 small finance banks. In order to attract more customers these banks are giving higher interest rates in comparison with the big banks.
IDFC FIRST Bank
Pertaining to giving rate of interest against savings account of the consumers, IDFC FIRST Bank is at the top, this bank is offering the highest rate of interest as of now. IDFC is offering up to 7% interest to it's consumers against savings accounts. Maintaining a minimum balance of Rs. 10,000 per month is mandatory to avail the highest rate of interest offered by IDFC.
After IDFC FIRST Bank the next bank to offer higher interest rate is RBL Bank. This bank is giving a maximum of 6.75% of interest to it's savings account holders. Of you want to open a savings account in RBL bank, you will have to maintain a minimum balance of Rs. 500 to Rs. 2500 per month.
Other Banks to offer higher rate of interest
IndusInd bank is offering a maximum of 6% interest to it's savings account holders. Whereas, AU Small Finance Bank is giving 4% to 7% of interests. Ujjivan Small Finance Bank is offering 4% to 6.5% of interests against savings deposits. Yes Bank is offering up to 6% interest on savings account but the consumer must maintain a minimum balance of Rs. 10,000 per month. Lakshmi Vilas Bank is giving interest to it's savings account consumers up to 5.75%, with a mandatory minimum balance of Rs. 500 per month.
Rate of Interests at Government and renowned Private sector banks
All Government and Large private sector banks are offering very dismal rate of interest to the consumers against savings account. The State Bank of India (SBI) is giving only 2.75% interest on savings accounts whereas Bank of Boroda is giving 2.75% to 3% interests. HDFC and ICICI banks are giving interest up to a maximum rate of 3.5% only. AXIS Bank is giving interest up to 4% on savings accounts.
Things to be kept in mind while choosing your bank
People who desire to open a new savings account should keep in mind certain important things while choosing their bank. Track record of the concerned bank must be checked. Moreover, consumers should also check for customer service, branch availability and ATM network of their desired bank. Consumers will also have to be little vigilant while choosing small finance banks.