There are several benefits of having a savings account: liquidity, earning interest, safety of funds, additional earnings because of auto sweep facility between savings account and fixed deposit, etc. Amid falling interest rates, smaller private banks offer higher interest rates, as per data compiled by BankBazaar. Here are the top five private banks offering the best interest rates on savings accounts.
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Small private banks offer higher interest rates on savings accounts compared to leading private banks such as HDFC Bank and ICICI Bank to attract new retail customers. You should choose a bank with a long-term track record, good service standards, wide branch network and ATM services across cities; a higher interest on savings accounts would be a bonus.
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DCB Bank offers interest rates of up to 6.50 percent on savings accounts. Among private banks, this bank offers the best interest rates. The monthly balance requirement is Rs 2,500 to Rs 5,000.
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RBL Bank is offering interest rates up to 6 per cent on savings accounts. The average monthly balance requirement is Rs 2,500 to Rs 5,000.
Bandhan Bank offers interest rates of up to 6 percent on savings accounts. The monthly average balance required is Rs 5,000.
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Yes Bank offers interest rates up to 5.25 percent on savings accounts. The average monthly balance requirement is Rs 10,000 to Rs 25,000.
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IndusInd Bank offers interest rates of up to 5 percent on savings accounts. The monthly average balance required is Rs 1,500 to Rs 10,000.
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The interest rate on savings accounts for all the BSE listed private banks are considered for data compilation. BankBazaar compiled the data as of November 3, 2021. The banks whose websites don't advertise the data are not considered. The minimum balance requirement for the regular savings account and excluding a basic savings bank deposit (BSBD) account are considered.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
