Interest rates

Savings account interest rates: private sector banks offer over 6% interest

Investment

oi-Vipul Das

|

Having an investment plan that allows you to earn returns while providing you with adequate liquidity to weather financial crises is a must in your portfolio. Accordingly, salaried and non-salaried persons must open a savings account. Interest rates for savings bank accounts are calculated on the basis of the daily balance and paid quarterly on June 30, September 30, December 31 and March 31 of each year. There are many types of savings accounts that can be used for various purposes, but the primary purpose of a savings account is to meet short-term financial goals.

Another factor to consider is that the Deposit Insurance and Credit Guarantee Corporation (DIGCC) insures savings accounts up to Rs. 5,000,000. However, it is worth mentioning that savings accounts can improve our financial lives by providing convenient access to cash as well as an interest rate advantage. When it comes to interest rates, we’ve created a list of the top three private sector banks that pay more than 6% interest on savings accounts. Note that we call these banks the top three solely because of their interest rates, not because of their market capitalization.

DCB Bank

DCB Bank

DCB is the only private sector bank currently offering the highest interest rate on savings accounts. A maximum interest rate of 6.75% is offered by the bank on account balances ranging from 50 lakh to less than 2 crore. The bank is giving the following interest rates on resident, NRE and NRO savings bank accounts from 7 February 2022.

Balance range (INR) Interest rate pa WEF 7 February 2022
On balances up to 1 lakh in the account 2.50%
On balances over 1 lakh to less than 2 lakh in the account 4.50%
On balances from 2 lakh to less than 10 lakh in the account 5.00%
On balances from 10 lakh to less than 25 lakh in the account 6.25%
On balances from 25 lakh to less than 50 lakh in the account 6.50%
On balances from 50 lakh to less than 2 crore in the account 6.75%
On balances of 2 crore to less than 50 crore in the account 5.50%
On balances of 50 crore and above 5.00%
Source: Bank website
RBL Bank

RBL Bank

After the aforementioned bank, RBL Bank is the second private sector bank in India to offer higher interest rates on savings accounts. RBL Bank now pays a maximum interest rate of 6.25% on savings account balances above Rs. 10 lakh and below Rs. 5 crores. The bank gives the following interest rate on savings deposits (including NRE/NRO savings) as of February 3, 2022.

Daily balance Interest rate (pa) as of February 3, 2022
Up to Rs. 1,000,000 4.25%
Above Rs. 1 lakh up to Rs. 10,000,000 5.50%
Above Rs. 10 lakh and up to Rs. 3 crores 6.25%
Above Rs. 3 Crore up to Rs. 5 Crore 6.25%
Source: Bank website
Bandhan Bank

Bandhan Bank

Bandhan Bank, ranked third on our list, offers a maximum interest rate of 6% on daily balances between Rs 10 lakh and Rs 2 crore. As of November 1, 2021, the bank gives the following interest rates on domestic and non-resident rupee savings bank accounts.

Balance slabs Price per year
Daily balance up to ₹1 lakh 3.00%
Daily balance above ₹1 lakh to ₹10 lakh 5.00%
Daily balance over ₹10 lakh to ₹2 crore 6.00%
Daily balance above ₹2 crore to ₹10 crore 5.00%
Source: Bank website

Article first published: Saturday, March 19, 2022, 2:58 p.m. [IST]