Most of salary earners use the saving accounts in India. Account holder can withdraw the amount any time form ATM or by issuing cheque / withdrawal Slip. All the Nationalized Banks, Private Banks and all cooperative banks provide saving bank account facility. The account holder is required to maintain the minimum balance according to the requirement of the bank and as per type of saving account.
Earlier, there was restriction of Reserve Bank of India (RBI) on interest rate on the saving account. But on 25th October 2011 RBI issued guidelines regarding the saving Bank Interest rate. According to the guidelines, banks are free to determine their saving bank interest rate. However, banks are required offer different interest rate for deposit up to one lakh and deposit above one lakh. Currently, banks are offering the interest form 4% to 7% per annum.
To whom applicable
The guidelines are applicable to the saving deposit account of resident Indian only. These guidelines are not applicable to Non-Residential (External) accounts Scheme and Ordinary Non Resident Deposit under saving account.
Highest Interest on saving account
Following is the list of banks and interest rate on saving account.
Interest on Saving Account for balance up to 1 lakh
Interest on Saving Account for balance above 1 lakh
|Yes Bank||6%||7%||Visit Bank Site|
|RBL Bank||5.50||6.1% (Above 50 Lacks 7%)||Visit Bank Site|
|Kotak Mahindra Bank||5.50%||6%||Visit Bank Site|
|IndusInd Bank||5.50%||6%||Visit Bank Site|
Interest rates are subjects to change, readers are advisable to verify the latest rate from official websites of the banks.