Savings account is a type of financial instrument offered by several banks. It lets you safely deposit your money with them while also allowing you to earn interest on your deposits. Different banks offer different facilities and benefits to their savings account holders. Depending upon your financial needs, you can compare them first before opening your savings account.
Here is a list of the 10 best bank for savings account in India with all the details you need to know. Let’s dive in!
10 Best Bank for Savings Account in India – April 2023
Here is a list of 10 best bank accounts 2023 based on interest rates:
| Savings Bank Account | Minimum Interest Rate | Minimum Balance Required (₹) |
| RBL Bank | 4.25% | 5,000/- |
| Indusland Bank | 3.50% | NIL |
| Kotak Mahindra Bank | 3.50% | NIL |
| IDFC First Bank | 3.50% | 10,000/- |
| HDFC Bank | 3.00% | 5,000/- |
| DBS Bank | 3.00% | 5,000/- |
| ICICI Bank | 3.00% | 1,000/- |
| Axis Bank | 3.00% | 2,500/- |
| Bank of Baroda | 2.75% | 500/- |
| State Bank of India | 2.70% | NIL |
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Best Bank for Savings Account 2023 – Detailed Overview
Check out the 10 best bank in India for savings account in India and their interest rates:
1. RBL Bank Savings Account
RBL savings accounts offer higher interest on your account balance. You need to maintain Rs.5000 as the monthly average balance. The interest rate on the RBL Bank Savings account is as follows.
| Savings Account Balance | Interest (p.a.) |
| From 0 – Rs.1 Lakh | 4.25% |
| Rs.1 Lakh – up to Rs.10 Lakh | 5.50% |
| Above Rs.10 lakh – up to Rs.25 lakh* | 6.00% |
| Above Rs.25 lakh – up to Rs.1 Cr* | 6.50% |
| Above Rs.1 Cr – up to Rs.3 Cr* | 6.50% |
| Above Rs.3 Cr – up to Rs.5 Cr* | 6.50% |
| Above Rs.5 Cr – up to Rs. 7.5 Cr* | 6.50% |
| Above Rs.7.5 Cr – up to Rs.10 Cr* | 6.25% |
| Above Rs.10 Cr – up to Rs. 50 Cr* | 6.25% |
| Above Rs.50 Cr – up to Rs.100 Cr* | 5.25% |
| Above Rs.100 Cr – up to Rs.200 Cr* | 6.00% |
| Above Rs. 200 Cr – up to Rs. 400 Cr* | 4.00% |
| Above Rs. 400 Crore – up to Rs. 500 Crore* | 5.25% |
| Above Rs. 500 Crore* | 5.25% |
2. IndusInd Bank Savings Account
IndusInd Bank account can be used as a savings account, a Demat and a trading account. The trading account functions in collaboration with Upstox. Because of this unique feature, you do not have to transfer your money from your savings account to your trading account. The rate of interest that you get at the IndusInd Savings Bank account is higher than the interest rate in most banks.
| Savings Account Balance | Interest (p.a.) |
| From 0 – Rs.1 Lakh | 4% |
| Rs.1 Lakh – Rs.10 Lakh | 5% |
| Above Rs.10 Lakh – Rs.1 Cr | Up to 6% |
| Above Rs.1 Cr – Rs.100 Cr | 6% |
3. Kotak Mahindra Bank Savings Account
Kotak Mahindra Savings Bank account or Kotak Mahindra 811 Savings bank account is amongst the best online savings accounts. There isn’t any minimum balance requirement to open an account. The interest that you get on your savings account balance is also efficient.
| Savings Account Balance | Interest (p.a.) |
| From 0 – Rs.50 Lakh | 3.5% |
| Above Rs.50 Lakh | 4% |
4. IDFC First Bank
The savings bank account at IDFC First Bank comes with benefits that allow you to use your bank account optimally. You are required to maintain a minimum of Rs.25,000 10,000 as a monthly average balance. The interest offered by IDFC First Bank on the savings account amount is given below:
| Savings Account Balance | Interest (p.a.) |
| From 0 – Rs.10 Lakh | 4% |
| Above Rs.10 Lakh – Rs.50 Cr | 6.25% |
| Above Rs.50 Cr – Rs.100 Cr | 5% |
| Above Rs.100 Cr – Rs.200 Cr | 4.5% |
| Above Rs.200 Cr | 3.5% |
5. HDFC Bank Savings Account
HDFC Bank requires you to maintain a minimum monthly average that changes from account types. Usually, in rural or semi-urban areas, account holders need to maintain Rs.5000 or more, and in metro or urban areas, account holders need to maintain an average of Rs. 10000 to Rs. 25000, depending upon the type of account. For rural areas it is an average quarterly balance of Rs. 2500 or a fixed deposit of Rs.10000 for a year., the accountholders need to maintain The tabular format below will explain further interest rates at HDFC bank.
| Savings Account Balance | Interest (p.a) |
|---|---|
| Less than Rs. 50 lakhs | 3.00% |
| Of and above Rs. 50 lakhs | 3.50% |
6. DBS Bank Savings Account
DBS Bank savings account or DGS Digi Account can also be availed simply by downloading the official app of the DBS bank. You may deposit any amount of your choice within 10 days of account opening to get a cashback benefit. The interest rate of the DBS savings account is as follows:
| Savings Account Balance | Interest (p.a.) |
| Upto Rs. 1 lakh | 3.25% |
| Above Rs. 1 lakh to Rs. 2 lakh | 3.50% |
| Above Rs. 2 lakh to Rs. 3 lakh | 4.25% |
| Above Rs. 3 lakh to Rs. 5 lakh | 7.00% |
| Above Rs. 5 lakh to Rs. 10 lakh | 6.00% |
| Above Rs. 10 lakh to Rs. 20 lakh | 5.50% |
| Above Rs. 20 lakh to Rs. 1 crore | 5.00% |
| Rs. 1 crore and above | 3.00% |
7. ICICI Bank Savings Account
ICICI Bank is a tech-savvy bank allowing you to open a savings account with very little money invested. A minimum balance of Rs. 1000 needs to be maintained, which varies based on geographical parameters. The interest rate on the ICICI Bank Savings account is as follows.
| Savings Account Balance | Interest (p.a.) |
| From 0 – Rs.50 Lakh | 3.00% |
| Rs.50 Lakh and above | 3.50% |
8. Axis Bank Savings Account
Axis bank provides its customers with a wide range of savings account options, exclusive advantages, and customised banking services. A minimum balance of Rs.2500 needs to be maintained. The interest rate on this is as follows.
| Savings Account Balance | Interest (p.a.) |
| From 0 – up to Rs.50 Lakh | 3% |
| Above Rs.50 Lakh – up to Rs.800 Cr | 3.50% |
9. Bank of Baroda Savings Account
Bank of Baroda is the largest PSU bank with good products. You need to maintain Rs.500 1000 as the average balance. The interest rate is as follows.
| Savings Account Balance | Interest (p.a.) |
| From 0 – Rs.1 Lakh | 2.75% |
| Above Rs.1 Lakh – less than Rs.10 Lakh | 2.75% |
| Above Rs.10 Cr – less than Rs.50 Cr | 2.75% |
| Above Rs.50 Cr – less than Rs.100 Cr | 3.00 % |
| Above Rs.100 Cr – less than Rs.200 Cr | 3.00 % |
| Above Rs.200 Cr – less than Rs.500 Cr | 3.05% |
| Above Rs.500 Cr – less than Rs.1000 Cr | 3.35% |
| Above Rs.1,000 Cr | 3.35% |
10. State Bank of India Savings Bank Account
State Bank of India is one of the most popular banks in India when it comes to holding a savings bank account. There isn’t any limit on the minimum or maximum monthly balance you need to maintain with SBI. The interest rate on your account balance at the time of interest calculation is as follows:
| Savings Account Balance | Interest (p.a.) |
| Balance less than Rs. 10 crore | 2.70% |
| Balance Rs. 10 crore and above | 3.00% |
How to Choose Best Bank for Savings Account
Savings accounts are meant to cultivate savings habits in an individual. Therefore, choosing the right account can highly motivate you and help you remain consistent. Here are some of the factors you can consider before choosing the best savings bank account in India:
1. Interest Rate
Different banks offer different interest rates on their savings accounts. Make sure to compare the rates carefully before making your choice. Another point to consider is that some banks offer multiple savings accounts to serve different purposes. So be careful about it and choose an account that best suits your needs.
2. Minimum Balance Requirement
With every bank, the minimum balance requirement changes. There are some that let you maintain an account with zero balance requirement. Other banks require you to maintain a monthly average balance, failing which, they charge a small fine as well. Depending upon your spending habits, this factor can make a lot of difference.
3. Accessibility
In this era of digitalization, all the banks have made their online presence. However there might still be time when you might require some personal assistance. In that case having a bank account in a bank that is close to you and easily accessible via calls can be very helpful.
4. Charges
For the services that banks offer to you, they charge a nominal fee for the same. Some of these services include debit card charges, account maintenance charges, ATM withdrawal charges etc. These charges vary from bank to bank and to avoid paying these miscellaneous charges, you must know them beforehand.
5. Perks
Banks offer several perks and offers on transactions with different account types. Some of them vary with the type of card you get while others are dependent on your account type. It never hurts to find out where you can save some extra bucks in advance.
Final Word
A savings account helps you keep your money safe and earn a considerable interest rate. However, before you choose a bank to open your savings account, consider the interest rate, customer service and facilities offered by the bank. This list of 10 best bank for savings accounts in India lays out all the details regarding the interest rate and minimum bank account balance. Choose the one that suits your financial needs and open a savings account right away!
FAQs
What are the limits (minimum and maximum) for savings bank accounts?
Banks in India do not limit the maximum amount you can keep in your savings bank account. Some banks have a minimum amount limit that you need to maintain. This limit varies from bank to bank. On average, Rs.500 needs to be maintained for the accounts that do not have a cheque facility, and Rs.1000 needs to be maintained for the accounts that have a cheque facility.
What are the benefits of a savings account?
One of the great things about a savings bank account is that it generates income on your money quarterly or annually without compromising on liquidity. You can withdraw whatever amount you want at the times you need it in a matter of seconds from your bank. Also, the amount in your bank remains safe and you do not have to worry about it being robbed or lost.
What are the various savings bank accounts?
There are various savings account types that banks offer. Depending upon the type, you get benefits or other added perks with your account. Some of the best online savings account types are listed below:
1. Single
2. Joint
3. Minor
4. Women
5. Senior Citizen
6. Salary
What documents are necessaryby banks to open a savings bank account?
The documents required to open a savings bank account are Aadhaar and PAN cards. With the banks going digital, with their account opening procedure, you do not have to provide photocopies of the documents. You can provide your Aadhaar Card number and PAN Card number, or you can upload a scanned copy of the document for KYC. You may also need to submit a savings account opening form.
How can I get the interest earned on my savings bank account?
Bank calculates interest on your account either quarterly, half annually, or bi-annually. This amount is deposited directly into your account from the bank. You do not have to do anything about it.
Which bank is giving 7% interest in a savings account?
DBS bank is paying one of the highest interest rates on its savings account. With a savings account balance between Rs 3 lakh to Rs. 5 lakh, you can earn a 7% interest rate on your savings account.
Is a savings account high risk?
A savings account is one of the safest financial instruments you can find. It helps you keep your money safe while also allowing you to earn interest on your funds.
Which bank has highest return in savings account?
Based on the current data, DBS Bank is paying the highest interest rate to its saving bank account holders on maintenance of a certain balance requisite. It is then followed by RBL Bank, paying interest of upto Rs. 6.50%
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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