Want to invest savings account with high interest rates? Try these banks
New Delhi: Savings bank accounts generally carry lower interest rates compared to those on fixed deposits. Compared to major private banks, there are a few small and new private banks which offer better interest on savings accounts. Reviewing how much interest the banks pay to hold the deposits in the savings account is highly recommended.
Leading public sector and private sector banks are now offering an interest rate between 2.5%-5.5% on their fixed deposits to the general public depending on the tenure of the deposit. For senior citizens, they are offering up to 6% interest on FDs.
But some of the smaller private sector banks and small finance banks are still offering between 3% and 7.25% on their on their savings bank accounts provided a specific amount of average balance is maintained in the account. So savers have an opportunity to earn higher interest by parking their money in a savings bank account rather than locking their money in FDs.
Some small finance banks are also offering high rates. For instance, AU Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank are offering interest rates of up to 7 per cent. The interest rates offered by small finance banks on savings account are higher compared to leading private and large public sector banks.
Also, worth mentioning here is that interest amount earned from fixed deposits and savings account is taxable as per the tax slab of the depositor. However, as per Section 80TTA, a deduction of Rs 10,000 is offered in interest income earned from a savings account. So the amount parked in a savings account of a small savings bank or a smaller private sector bank can potentially earn higher post-tax interest than the fixed deposit in a larger PSU and private sector bank.
If you are planning to park some of your savings in high-yield savings accounts here are few options for you.
These days RBL Bank, Bandhan Bank and Yes Bank is among the top 3 banks that offers highest savings account interest rate to its customers.
RBL Bank is offering highest savings account interest to its customers. As per the official website of RBL Bank — rblbank.com — the private lender is offering savings account interest rate to its customers from 4.5 per cent to 6.25 per cent.
Bandhan Bank is offering savings account interest rate from 3 per cent to 6 per cent, depending upon the daily balance.
As per the bank website — yesbank.in, the private lender is offering 4 per cent to 5.5 per cent savings account interest rate.
So, it’s for the bank depositors to decide whether they want fast appreciation of their money or just remain casual in regard to their savings account returns.