5 Best Savings Accounts With Returns Up To 7.15%
The returns on the savings account and fixed deposits investments of banks are decided by adjustments in the monetary policy of the RBI, such as the repo rate, the base rate, the economic circumstances, the banks' liquidity status and the extent of credit appetite. The Reserve Bank of India (RBI) have set an unaffected benchmark interest rate of 4 per cent in its December monetary policy. There is a sense of relaxation for savings account investors and fixed deposit holders, as banks do not further cut interest rates. Compared to existing private banks and public sector banks, there are some small and new private banks which offer higher interest on savings accounts. To know how much returns are offered by banks to leave your funds in the savings account, it is necessary to give some serious reading on the interest rates as most of us manage multiple savings accounts in order to cover emergency circumstances.
Bandhan Bank and IDFC First Bank, provide interest rates on their savings accounts of up to 7.15% and 7%, respectively. Coming to small finance banks such as AU Small Finance Bank and Ujjivan Small Finance Bank provide interest rates of up to 7% and 6.5%, respectively and hence the returns are competitive. Opposed to major private and large public sector banks, these interest rates are higher. For comparison, HDFC Bank and ICICI Bank provide 3 to 3.5% interest on their savings accounts, whereas State Bank of India (SBI) and Bank of Baroda offer 2.70% and 2.75% interest on their savings accounts, respectively.
| Sr No. | Banks | ROI (p.a.) in % | Minimum balance limit |
|---|---|---|---|
| 1 | Bandhan Bank | 3 to 7.15 | Rs 5000 |
| 2 | IDFC First Bank | 3.5 to 7.00 | Rs 10,000 |
| 3 | RBL Bank | 4.75 to 6.75 | Rs 500 to Rs 2,500 |
| 4 | IndusInd Bank | 4 to 6.00 | Rs 1,500 to Rs 10,000 |
| 5 | Yes Bank | 4 to 5.50 | Rs 2,500 to Rs 10,000 |
Minimum and maximum balance requirements
The minimum balance limit in private bank savings accounts opens at Rs 500 and continues up to Rs 10,000. Opposed with public sector banks, this is kept higher by the banks as they're more involved in going out with their facilities to the salaried middle class and self-employed individuals. The minimum balance limit at IDFC First Bank and Bandhan Bank is Rs 10,000 and Rs 5,000 respectively. The minimum balance criteria is Rs 2,500 to Rs 10,000 for leading private banks, such as Axis Bank and HDFC Bank for the eligible individuals.
Go for a bank which has a strong performance history, excellent customer standards, a large branch reach and city-wide ATM services; considering all these first, a stronger interest rate in savings accounts will be a benefit.