Unsure how to choose the best bank for your savings account?
We get it. Opening a savings bank account is a fundamental step when dealing with public or private sector banks in India. But the real challenge lies in finding the best bank for savings bank, especially with varying interest rates and the availability of multiple options.
To make this journey easier for you, we’ve sorted a list of the best banks to open an account in India, emphasising their unique selling points, distinctive offerings, and more.
Best Bank For Savings Account- Importance of Choosing the Right One
Savings accounts are financial instruments that provide individuals with a secure and practical means of storing money, coupled with the opportunity to earn the best interest rate on savings accounts.
- Picking the best bank for your savings isn’t just a choice; it’s like making a promise to set yourself up for lasting financial growth and stability. It’s about creating a plan for your money to grow and stay safe over time.
- High-interest savings accounts are not just about the numbers on paper; besides the high-interest rates, they continue to offer a variety of financial products to help you invest.
For instance, some of the high-interest savings accounts offer to open your savings accounts with 0 or a minimal Rs 100/Rs 500 balance.
Some high-interest savings accounts in India don’t ask for any minimum balance to get started or keep the savings account going. Take the AU Digital Savings Account, for example – it gives you a 3.5% interest rate per year without a balance of maintenance fees. Likewise, the Kotak 811 Digital Bank Account is another one to consider. It offers a 3.5% interest rate per year and lets you open an account with no minimum balance.
- Emphasising security, the best savings bank accounts tend to include protective measures like FDIC insurance to safeguard deposited funds.
Factors to consider when selecting the best savings account include the best interest rate on savings accounts, fees, account accessibility, and the reputation of the bank. If you’re wondering about the best bank to open an account in India, these factors play a crucial role in making a smart decision for a high-interest savings account.
List of Top Best Savings Bank Accounts of 2023
| Bank Name | Interest Rate (p.a.) | Minimum Account Balance | Total Branches in India | ATMs in India | Public/Private |
| RBL Bank | 4.25% to 7.50% p.a. | Rs 5,000 | 430 | 1,221 | Private |
| DBS Bank | 3:25% to 7.00% p.a | Rs 5,000 | 35 | N.A. | Private |
| IndusInd Bank | 3:50% to 6.00% | NIL | 2,060 | 2,867 | Private |
| IDFC First Bank | 3.00% to 7.00% p.a | Rs 10,000 | 576 branches as of September 30, 2023. | 216 | Private |
| Kotak Mahindra Bank | Starts at 3:50% | NIL | 1,780 | 2,963 | Private |
| HDFC Bank | Up to 3.50% | Rs 5,000 | 5,608 | 16,087 | Private |
| ICICI Bank | Up to 3.50% | Rs 1,000 | 5,288 | 15,158 | Private |
| Axis Bank | Up to 3.50% | Rs 2,500 | 4,594 | 12,922 | Private |
| Bank of Baroda | 2:75% p.a. to 3.25% p.a. | Rs 500 | 9,482 | 13,160 | Public |
| State Bank of India | 2.70% upto 3:00% | NIL | 22,414 | 58,013 | Public |
How to Select the Best Bank to Open Account in India
When deciding on the most suitable savings bank account to cater to your financial needs, take into consideration the following factors:
- Consider the Interest Rates Offered: Consider the interest rate offered by the bank, as it significantly impacts the growth of your savings. To maximise your earnings, compare rates across different banks and choose the one offering the highest interest rate.
- Verify the Minimum Cash Balance: Verify the minimum cash balance requirements of savings accounts. Some banks may impose a minimum balance, so choose a bank with a requirement that aligns with your financial situation.
- Analyze Withdrawal Flexibility: Analyze the withdrawal options and limitations provided by the bank. Ensure that the bank offers flexibility in withdrawals, considering some banks may have restrictions or extra charges for frequent withdrawals.
- Examine Fees and Charges: Examine the fees and charges associated with the savings account, including ATM transactions, chequebook issuance, and internet transfers. Opt for a bank with minimal or no fees that suits your banking preferences.
- Review Customer Service: You can review and evaluate the level of customer service offered by the bank. Quick and helpful customer support is crucial for addressing queries or issues, contributing to a hassle-free banking experience.
- Check Accessibility: Assess the accessibility of the bank’s branches, ATMs, and online banking facilities. Ensure the bank has a widespread network of ATMs and locations in your vicinity for convenient access. Check for reliable and user-friendly mobile and internet banking services.
- Explore Perks Offered: Investigate additional benefits provided by the bank, such as cashback on purchases, loyalty programs, and exclusive discounts. Consider these perks, as they can enhance the overall value of your chosen savings bank account.
Overview of the High-Interest Savings Account in India
1. RBL Bank
RBL Bank is one of the oldest private sector banks in India, established in 1943. It is recognised for its dynamic and fast-growing nature, providing innovative and customised banking solutions.
Features and USPs:
- Most dynamic and fast-growing bank in India.
- Over 65% of advances and deposits come from the retail segment.
Latest Interest Rates as of August 21, 2023
- Savings account: 4.25% to 7.50% p.a., depending on the balance and category of customers.
- Fixed deposit: 3:50% to 7:10%p.a., depending on the tenure and amount.
- Home loan: Housing Loan Starting from 8.90% p.a. onwards
- Personal loan: Can be obtained subject to conditions like a minimum Rs 40000 salary per month and more.
2. DBS Bank
DBS Bank is one of the leading foreign banks in India, known for its advanced and digital-savvy banking experience.
Features and USPs
- Most advanced and digital-savvy bank in India.
- Over 85% of advances and deposits come from the retail segment.
- Diversified portfolio catering to different customer segments and needs.
Latest Interest Rates as of November 2023- Rates w.e.f. 10th July 2023
- Savings account: 3:25% to 7.00% p.a., depending on the balance and category of customers.
- Fixed deposit: 2:50% to 7.50% p.a., depending on the tenure and amount.
- Home loan: 8.75% to 9.25% p.a., depending on the loan amount, category of customers, and credit score.
- Personal loan: 10.99% to 34% p.a.,depending on the loan amount, category of customers, and credit score.
- Car loan: Begins at 6:25% p.a., depending on the loan amount, category of customers, and credit score.
3. IndusInd Bank
IndusInd Bank is one of the fastest-growing private sector banks in India. Established in 1994, it is known for its responsive and personalised banking experience.
Features and USPs:
- Most responsive and personalised bank in India.
- Over 75% of advances and deposits come from the retail segment.
Latest Interest Rates as of 5th Dec 2023
- Savings account: 3.50% to 6.00% p.a., depending on the balance and category of customers.
- Fixed deposit: 4:90% to 7.00% p.a., depending on the tenure and amount.
- Personal loan: 10.25% to 32:02% p.a., depending on the loan amount, category of customers, and credit score.
- Multiple types of car loans are subject to minimum requirements that must be met
4. IDFC First Bank
IDFC First Bank is a new-generation private sector bank in India, formed by the merger of IDFC Bank and Capital First in 2018. It is known for its customer-centric approach and transparent banking experience.
Features and USPs
- Most customer-centric and transparent bank in India.
- Over 90% of advances and deposits come from the retail segment.
Latest Interest Rates as of November 2023:
- Savings account: 3.00% to 7.00% p.a., depending on the balance and category of customers.
- Fixed deposit: Upto 7.75% p.a. for the general public and 8:25% p.a. for senior citizens, depending on the tenure and amount.
- Home loan: 8.75% to 9.25% p.a., depending on the loan amount, category of customers, and credit score.
- Personal loan: For salaried class: Min 23 years, and for self-employed- minimum 25 years as eligibility criteria.
Car loan: Begins at 9:00% p.a., depending on the loan amount, category of customers, and credit score..
5. Kotak Mahindra Bank
Kotak Mahindra Bank is one of India’s leading private sector banks, known for its efficiency and customer-friendly approach.
Latest Interest Rates as of November 2023:
- Savings account: Begins at 3.50% p.a., depending on the balance and category of customers.
- Fixed deposit: 2:75% to 7.25% p.a., depending on the tenure and amount.
- Home loan: For Salaried 8.70% onwards and for Self-employed 8.75% onwards
- Personal loan: Starts from 10.99% p.a., depending on the loan amount, category of customers, and credit score.
6. HDFC Bank
Established in 1994 as a subsidiary of Housing Development Finance Corporation Limited (HDFC), HDFC Bank stands as a prominent private sector bank in India. Renowned for its customer-centric approach and inventive services, the bank offers an extensive array of financial products and services encompassing savings and current accounts, fixed deposits, loans, credit cards, insurance, mutual funds, forex, and digital banking solutions.
- Savings Account Interest Rate: 3.00% p.a. for balances up to Rs. 50 lakhs, and 3.50% p.a. for balances above Rs. 50 lakhs.
- Interest Calculation: Daily balance; credited quarterly.
7. ICICI Bank
Established in 1994 as a part of the Industrial Credit and Investment Corporation of India (ICICI), ICICI Bank is another leading private sector bank in India. With a diversified portfolio and global reach, ICICI Bank offers a wide range of banking and financial services, including savings and current accounts, fixed deposits, loans, credit cards, insurance, mutual funds, forex, and digital banking solutions.
- Savings Account Interest Rate: 3.00% p.a. – 3:50% p.a.
- Interest Calculation: Daily balance; credited quarterly.
8. Axis Bank
Founded in 1993 as UTI Bank, Axis Bank is the third-largest private sector bank in India. Known for its customer-friendly services, customised solutions, and competitive pricing, Axis Bank offers a variety of banking and financial services, including savings and current accounts, fixed deposits, loans, credit cards, insurance, mutual funds, forex, and digital banking solutions.
- Savings Account Interest Rate effective 1st July 2023: 3.00% p.a. for balances below Rs. 50 lakhs, and 3.50% p.a. for balances of Rs. 50 lakhs and upto 2000 crores..
9. Bank of Baroda
Founded in 1908, the Bank of Baroda stands as one of India’s oldest and largest public sector banks. Upholding a legacy of trust and social responsibility, the bank offers a diverse range of banking and financial services, encompassing savings and current accounts, fixed deposits, loans, credit cards, insurance, mutual funds, forex, and digital banking solutions.
- Savings Account Interest Rate: 2:75% p.a. to 3.25% p.a.
The bank offers different types of savings accounts that are suitable for different age groups, such as traditional or Regular Savings Account, Corporate Salary Account, Children’s Savings Account, Women’s Savings Account, Digital Saving savings accounts and more.
10. SBI- State Bank of India
The State Bank of India (SBI) stands as the largest and oldest public sector bank in India, boasting a vast network of over 22,000 branches and 62,000 ATMs across the nation and beyond. SBI is renowned for its diverse banking products & services, including savings accounts, fixed deposits, loans, credit cards, insurance, investments, and more.
- With its famous digital innovations like YONO, SBI Card, and SBI Buddy, SBI ensures convenient and secure banking solutions.
- Their savings bank interest rate currently stands at 2.70% per annum for savings balances below Rs. 10 crore and 3.00% for balances exceeding Rs. 10 crore-. w.e.f 15th October 2022
With various savings account options tailored to different needs, such as basic savings, small savings, savings plus, and accounts for minors, SBI offers a range of features and benefits to cater to individual preferences.
These interest rates are subject to change without prior notice. Please contact the respective banks for the latest and most accurate rates.
Conclusion
We hope this article has simplified the process of selecting the best bank for your savings account. Wishing you a secure and rewarding banking experience!
FAQs
Minimum balance requirements vary from zero to Rs. 10,000, and withdrawal limits range from Rs. 10,000 to Rs. 1 lakh, depending on the bank. There’s generally no maximum limit for savings, but PAN details are needed for large transactions exceeding Rs. 50,000 or Rs. 10 lakhs annually.
The ideal bank account depends on personal preferences. Kotak Mahindra Bank’s 811 and AU, Small Finance Bank, are known for their high interest rates, zero balance options, and additional benefits, while IndusInd, ICICI, and HDFC Banks offer diverse features and reliable services.
DBS Bank, Jana Small Finance Bank, Ujjivan Small Finance Bank, Equitas Small Finance Bank, and Suryoday Small Finance Bank are known to offer up to 7% interest on savings accounts, with specific conditions and balance criteria varying between them.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.