Many people maintain a huge balance in savings accounts in banks. It provides a great benefit to account holders. The foremost benefit is that the individual earns interest on the amount which is deposited in the bank. The interest rate can be 4%, and so this acts as an additional source of income. This interest rate is not fixed and savings account interest rate varies from bank to bank. You need to know that if it is a government bank or a public sector bank, the interest rate will not move beyond 4%. However, the interest rate on a savings account is deregulated, and there is a possibility of earning a higher rate of interest also. It is mostly the scheduled banks and private sector banks that offer more interest on savings account. If you are wondering which bank to choose for opening a savings account, you must read this section to learn which bank offers the most attractive interest rate on the savings account.

Yes Bank offers 6% interest rate

It is pretty unfortunate to learn that Yes Bank used to previously offer 7% interest rate on the savings account, but now it has reduced the rate to 6%. This is all due to the decline of the repo rate in the Indian economy. Nevertheless, you will still get the interest rate of 6% on your savings which is still the best.

Kotak Mahindra also offers 6% interest rate

If you have an account in Kotak Mahindra Bank, you will get 6% interest rate on your savings account annually. Being the same as Yes Bank interest rate on savings account, this is perhaps the best rate of interest on a SB account.

IndusInd Bank offers 6% with a slight variation

IndusInd Bank is offering 6% interest on the SB account. Ifyour balance is less than Rs 10 Lakhs, the interest rate offered is 4%. Account holders who have balance ranging between Rs 10 lakh and Rs 1 Crore in the savings account are eligible for 5% interest rate on savings account whereas account holders having amount of more than Rs 1 Crore are offered 6% interest rates.

Ratnakar Bank Ltd. (RBL Bank)

You will be delighted to know that Ratnakar Bank Ltd. offers the interest rate 7.1% on savings account per annum. If you can have the balance of more than Rs 10 Lakhs, then it will prove extremely profitable for you. But, if your balance is below Rs 10 Lakhs, the rate of interest will come down to 6.1%. If the balance is up to Rs 1 Lakh, the rate of interest payable will be 5.1%.

State Bank of India offers 4% interest rate

SBI or State Bank of India is the financial service and multinational banking company which offers an interest rate of 4% per annum on the savings account having balance above Rs 1 Crore and 3.5% on balance below Rs 1 Crore.

ICICI Bank offers 4% interest rate on SB

ICICI Bank offers the maximum interest rate of 4% on the savings account having balance above rs 50 Lakhs provided you have the minimum balance of Rs. 10,000. If you belong to semi urban region, this balance gets reduced to Rs. 5000. For those belonging to rural areas need to have the balance of Rs. 2000 to avail 3.5% interest rate on SB.

Axis Bank offers 4% interest rate on savings account

If you maintain the minimum quarterly balance of Rs 10000, Axis Bank will offer 3.5% interest rate on the savings account. Account holders who maintain above Rs 50 Lakhs in their accounts earn interests at a rate of 4%.

Punjab National Bank and the interest rate

Punjab National Bank also offers the interest rate of 4% on savings account having balance above Rs 50 Lakhs, but if the balance is below Rs 50 Lakhs, the interest rate drops to 3.5%.

Saving account interest rate must be considered before you open a savings account. RBL offers the maximum interest on your savings account. If you have a balance more than Rs 10 Lakhs, it offers the interest of 7.1%, and if the balance is below ten lakh, you get the interest of 6.1%. The rate of interest offered by Yes Bank is also very competitive.

Author's Bio: 

Puneet Sharma works as a guest lecturer in Delhi. He holds a B.Tech & MBA Degree from the UPTU. With extensive knowledge and experience in various financial products, he also works as a consultant in banking & finance domains wherein he offers advice to his clients in managing personal finance.