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Savings Account Online

A savings account are opened at a bank or other financial institution that earns a moderate interest on the balance maintained. A savings account is essentially opened to put aside money that is not required immediately. Banks place restrictions on the number of withdrawals that can be made from the account each month.

The interest rates earned on a savings account are determined based on the minimum average balance maintained in the account. The rate of interest offered on the balance in a savings account varies from bank to bank.

Savings Account
  • Instant money transfer
  • 24x7 ATM withdrawals
  • Attractive rate of interest

Savings Account Interest Rate from Top Banks Updated on 02 Jul 2020

Savings Account Interest Rate Offered
Savings Account Interest Rate Offered
RBL Bank 5.00% - 6.75%
Yes Bank 5.00% - 6.25% p.a.
Kotak Mahindra Bank 4.00% - 6.00% p.a.
Lakshmi Vilas Bank 3.50% - 6.50%
IndusInd Bank 4.00% - 6.00% p.a.
Bandhan Bank 4.00% - 7.00% p.a.
HDFC Bank 3.50% - RBI’s Repo Rate plus 2 basis points
Axis Bank 3.50% p.a. - RBI’s Repo Rate plus 0.85%

Know more about top bank Saving Account Interest Rate

What is Savings Account?

Savings accounts, as the name suggests, is a great way to save funds for the future. Excess funds can be kept aside and used when necessary. Here are a few reasons why opening a savings bank account is a good option:

  • Savings bank accounts offer an interest rate slightly higher than the rate of inflation, in order to keep the real value of money stable throughout the years.
  • Modern savings accounts are feature packed and offer quick links to pay bills, make quick transactions, etc. to the account holder as soon as he / she logs in to the account.
  • Savings accounts can help cover any unexpected expenses that may arise in future.
  • Holding a savings account helps improve financial stability since the funds in the account have limits on the number of withdrawals made against the account.
  • Banks customize savings accounts depending on the general type of usage the account witnesses in its lifetime.

Types of Savings Accounts

Banks offer customers a variety of savings accounts that differ in terms of its balance requirements and features. The following are some of the types of savings accounts offered by most banks:

  1. Regular Savings Account
  2. These are opened on the bank’s most basic terms and conditions. These accounts don’t see regular deposits of consistent amounts, nor do they see regular withdrawals. These are primarily the virtual equivalent of a safe where the money just sits waiting to be used by the account holder. These facilitate the most common form of virtual savings that aren’t touched, unless absolutely necessary.

  3. Salary Based Savings Account
  4. These most often opened by banks on the request of large companies that require a payment disbursal solution. Banks offer companies preferential rates and specific terms for these accounts – which will be individually handled by each of the latter’s employees. At the date of payment disbursal, the bank withdraws from the company account and disburses the required amount among the salary based savings accounts opened for the employees. It should be noted that most salary accounts do not have a minimum balance requirement, but once the salary stops being credited (for whatever reason) for 3 consecutive months, these accounts are changed into regular savings accounts with a minimum balance requirement.

  5. Savings Accounts for Senior Citizens
  6. These accounts are created for senior citizens, with specific functionality and benefits for those in the senior citizen category. These function in the same way that regular savings accounts do, but generally offer higher rates of interest and exclusive banking privileges. They can be linked to other senior citizen savings schemes to remit the funds from retirement accounts or pension funds, and consolidate all the funds under one single bank account.

  7. Savings Accounts for Children and Minors
  8. These accounts don’t generally have a minimum balance requirement and function in the same way as regular savings accounts. These are designed to educate the younger generation about modern day banking facilities and the general nuances of managing a bank account. These accounts are opened for minors by their parents or legal guardians. These accounts are operated under the supervision of the legal guardian until the child is 10 years old. Once the minor has crossed the age of 10, they are permitted to operate their account independently. After the account holder is 18 years old, the account is converted to a regular savings account and has a minimum balance requirement.

  9. Zero Balance Savings Account
  10. This type of account merges the best features of a savings account and a current account. While there are still limits on withdrawal amounts, these accounts are not charged any penalties if the balance in the account falls below the prescribed minimum. Sometimes, in cases where employees shift jobs and have to create new salary accounts – their old salary account will transform into a regular savings account – and when the balance inevitably falls below the minimum, they are charged a penalty or maintenance fee. This does not happen with zero balance savings accounts. Usually, banks offer these accounts to applicants from lower economic backgrounds, but have started offering salary accounts as zero balance accounts due to their utility.

  11. Women’s Savings Account
  12. A number of banks have begun offering savings accounts that have been specifically designed for women. These accounts come with special features to benefit the account holder. These benefits include discounts on certain purchases, low interest rates on loans, and a waiver on demat account charges.

    Linked Savings Account

    A Linked Account is the term given to a savings bank account which is linked either to a Checking Account or a NOW Account (Negotiable Order of Withdrawal) by account number. Sometimes also referred to as a Package Account, the convenience offered by a linked account is that it allows the account holder the flexibility of moving funds to their demand account as required, while the majority of the funds can be kept in the saving account. The additional benefit this provides is that the customer is also eligible for free checking or lower service charges. In case of a Linked Account, the balance of this account as well as the Checking or NOW Account will usually be provided together on a single account statement which consolidates the balances of all these accounts. Linked accounts often also enable the account holder to earn higher interest on the funds that are stored in their savings account.

Eligibility Criteria and Documents Required for Savings Account

The Savings Account eligibility criteria can be different for different banks. The common criteria are as follows:
  • Resident Individuals
  • Foreign nationals residing in India
  • Non-Resident Indians
  • 18 years
  • Banks also offer minor accounts that are jointly operated with a parent or guardian.
Proof of age and identity Any authentic, registered, and recognized document issued by a competent authority, that contains the full name and a recent photograph of the applicant can be used.PAN, Voter ID, Passport, and Driving license are some examples of the documents that are accepted by banks when applying for a savings account.
Photographs Most banks require that customers submit at least 2 passport-sized photographs along with their application.
Proof of address Any authentic, registered, and recognized issued by a competent authority, which contains the address of the applicant can be used. Customers should keep either a Driving license, Voter’s ID, Passport, Utility bill are among some of the documents that can be submitted to the bank.
Senior Citizen Card Almost all banks offer Senior Citizen savings accounts to their customers. Applicants who wish to open a senior citizen’s account are required to submit proof of their age. A senior citizen card is issued by the Social Welfare Department and is the document that is most preferred as proof.

How to Open a Savings Account at Bankbazaar.com

A simple way of choosing and opening a savings account is to use the bankbazaar.com application service. The following steps can help find a savings account that would be most suitable:

  • Step 1: Log on to www.bankbazaar.com and select “Savings Account” from the “Investments” bar.
  • Step 2: You will be prompted to enter a few details like your gender, your city of residence, duration of employment, current salary, etc. in order to find a suitable account for a person of your description.
  • Step 3: The bankbazaar tool will compute all the information you have provided in order to find you an unbiased list of the best savings bank accounts in your location, and ask if you wish to apply for any of them.
  • Step 4: Pick the account you like from different banks, furnish your contact details and personal information, and the bank will contact you to complete the process.

Features and Benefits of Savings Account

Here are some of the features and benefits of a savings bank account:

  • As the name suggests, a savings bank account is a safe place to store surplus funds. It helps build a nest egg for the unexpected situations that may arise in the future.
  • The balance in a savings account earns interest. While the rate of interest might not be as high as other bank deposits, since the funds are not withdrawn on a regular basis, it continues to increase the funds in the account.
  • All savings account, whether held at a nationalised bank or any other financial institution, is always safe.
  • A savings account provides account holders some level of liquidity. Banks usually provide account holders with debit/ATM cards that can be used to make a certain number of withdrawals from their savings account.
  • An advantage for most savings account holders is that banks usually offer discounts on the locker rental facilities for customers who maintain the minimum quarterly balance.
  • Most banks also provide savings account holders with various insurance covers including personal accidents and death.

How to Check Your Savings Account Balance?

You can access your savings account through a totally secure interface online, or at an ATM, or visit the bank with authentication. Today, most transactions through savings bank accounts are done online. Banks have made it incredibly simple to conduct basic and recurring transactions over the internet through their secure servers – which can be accessed through the respective bank’s smartphone app and websites.

Using the bank’s smartphone app, account holders can pay bills, check the account balance, transfer funds, and manage their finances in real-time, without the need to visit the bank at all.

Savings Account Minimum Balance

Many banks, depending on the type of savings account, charge a maintenance fee when the balance of funds in the account drops below a certain number.

For example, Mr. Babu has a savings bank account in Bank A.

Bank A has a minimum balance requirement of Rs.10,000 at any given time. Mr. Babu conducts transactions with amounts being debited and credited every so often, and incurs no additional charges as his account balance is always above Rs.10,000.

If his account balance drops to even Rs.9,000, he will start to face “maintenance charges” being levied on his account by Bank A. Let’s say Bank A charges Rs.500 as maintenance, this means that if Mr. Babu cannot raise the balance in his bank account to at least Rs.10,000, the bank will charge him this fee every month.

So, if Mr. Babu doesn’t raise his account balance and has no transactions in this account – in 18 months, Mr. Babu’s account will show a balance of Rs.0, as Rs.500 is being deducted every month. Rs.500 x 18 months = Rs.9000.

Banks charge anywhere between Rs.200 to Rs.800 as maintenance for the savings account every month that the minimum balance is below the prescribed amount.

Banks charge anywhere between Rs.200 to Rs.800 as maintenance for the savings account every month that the minimum balance is below the prescribed amount.

Charges for opening and using savings account

Bank Non-maintenance of Average Balance Annual Debit Card Maintenance charges Debit Card Transaction charges
Cash withdrawal Non-financial transactions
HDFC Bank AMB Slabs Metro & Urban Semi Urban Rs.150 Rs.20 + taxes Rs.8.5 + taxes
AMB Requirement Rs.10,000 AMB Requirement Rs.5,000
Rs.7,500 to < Rs.10,000 Rs.150 NA
Rs.5,000 to < Rs.7,500 Rs.300 NA
Rs.2,500 to < Rs.5,000 Rs.450 Rs.150
Rs.0 to < Rs.2,500 Rs.600 Rs.300
ICICI Bank Metro & Urban Semi-urban Rural Gramin Rs.150 Rs.20 Rs.8.5
Rs.100 + 5% of the deficit in the balance requirement 5% of the deficit in the balance requirement
Axis Bank Metro Urban Semi-urban Rural Rs.200 Rs.20 Rs.8.5
Rs.10 for every Rs.100 shortfall in required balance or Rs.600,(whichever is lower) Rs.10 for every Rs.100 deficit or Rs.500 (whichever is lower) Rs.10 for every Rs.100 deficit or Rs.300 (whichever is lower) Rs.10 for every Rs.100 deficit or Rs.250 (whichever is lower)
Kotak Mahindra Bank NA NA NA
SBI NA NA Rs.17 Rs.6

How to Open a Savings Account Offline?

While most bank related work happens online these days, some trips to the bank are absolutely unavoidable. In case you’re stuck without a portal through which to create a bank account online, you can follow these steps to open a savings bank account offline:

Step 1: Research different banks and their interest rates, find the one that best matches your specific requirements, if any, and the type of bank account you wish to open.

Step 2: Take a copy of your identity proof, two photographs, address proof, income / employment proof (if necessary), and age proof and head to the nearest branch of the bank in which you wish to create an account.

Step 3: Once at the bank, tell the clerk you wish to open a savings bank account, and he or she will hand you an account opening form.

Step 4: Fill out the form as required, and submit the same along with the copies of your identity proof, photographs, address proof, income / employment proof (if required), and age proof to the clerk.

Step 5: The clerk will then submit the application for processing and, depending on which bank you’ve chosen, your account will be opened and functional in any time between 1 and 12 working days.

How to Open a Saving Account Online?

The simplest way to conduct banking operations is online, and opening a savings bank account is a very simple procedure:

Step 1: Research different banks and their interest rates, find the one that best matches your specific requirements, if any, and the type of bank account you wish to open.

Step 2: Log on to the website of the bank in which you wish to open your account. Note that not all banks have online account creation facilities.

Step 3: Fill out the online application form for the savings account that meets your needs and submit it along with a digital copy of identity proof, photographs, address proof, income / employment proof (if required), and age proof. Some banks may require you to submit physical copies of your documents for which they will send over an executive.

Step 4: Your details will be verified by the bank’s back-end team, and you will be able to start using your account almost instantly.

Read Related Info about Open Savings Account from different bank

Cash Withdrawal Limit

Mentioned below are the cash withdrawal limits of some well-known banks in India:

Bank Name Cash Withdrawal Limit*
RBL Bank Rs.50,000 to Rs. 1.5 lakh
Yes Bank Rs.25,000 to Rs. 1 lakh
Kotak Mahindra Bank Rs.40,000 to Rs. 2.5 lakh
Lakshmi Vilas Bank Rs.10,000 to Rs. 1 lakh
IndusInd Bank Rs. 50,000 to Rs. 5 lakh
Bandhan Bank -
HDFC Bank Rs.25,000 to Rs. 1 lakh
Axis Bank Rs.40,000 to Rs. 3 lakh

*Note: The withdrawal limit may vary based on the type of debit card.

Cash Transaction Limit

Mentioned below are the cash withdrawal limits of some well-known banks in India:

Bank Name Cash Transaction Limit*
RBL Bank Rs.10,000 to Rs.3 lakh
Yes Bank Rs.1 lakh to Rs.3 lakh
Kotak Mahindra Bank Rs.50,000 to Rs.4.5 lakh
Lakshmi Vilas Bank -
IndusInd Bank Rs.50,000 to Rs.10 lakh
Bandhan Bank -
HDFC Bank Rs.2.75 lakh to Rs.3.5 lakh
Axis Bank Rs.1 lakh to Rs.6 lakh

*Note: The transaction limit may vary based on the type of debit card.

Best Savings Accounts in India

When opening a savings account, one of the most difficult decisions to make is choosing the right bank. The following are a list of some of the banks that offer attractive features on a savings account:

SBI Savings Account

SBI Savings Accountare among the most balanced – as there are SBI bank branches all over the place, and the rate of interest is always competitive. These accounts also have usability through the SBI website.

ICICI Savings Account

ICICI savings accounts may not offer the highest interest rate, but are almost unparalleled in terms of ease of use. The intuitive mobile app and online banking facilities with direct bill pay, etc. are excellent tools that can save time.

HDFC Savings Account

HDFC Bank is one of the country's largest private sector banks. It has a number of variants of the savings account for its customers to choose from. Additionally, HDFC has among the largest ATM networks in cities, which makes it the ideal account for a certain type of account holder.

Kotak Mahindra Bank Savings Account

Kotak Mahindra Bank has a number of savings accounts that it offers its customers. The newest variation of the savings account is the 811 account that has been gaining a lot of popularity. The account is a zero balance account and just takes a few minutes to open. Customers can upload the KYC documents to the bank website and the account is instantly activated.

Axis Bank Savings Account

Axis Bank has a wide range of savings accounts that customers can choose from. All these savings accounts come with either a Visa or RuPay debit card, whose use earns the account holders a number of perks.

Federal Bank Savings Account

Federal Bank has a type of savings account for almost every type of customer. All the savings accounts come equipped with features such as internet banking, e-statements, and online bill payments.

Canara Bank Savings Account

Canara Bank is one of the country’s oldest and most trusted nationalised banks. While the bank still adheres to some traditional banking practices, it has also adapted to the technological advances in the industry. Additionally, the minimum balance requirement for the savings account is comparatively lower than other banks.

Punjab National Bank Savings Account

Punjab National Bank has a wide range of savings accounts that have been designed keeping in mind the financial requirements of the prospective customer. The accounts offered range from retirement accounts to accounts for armed forces and student accounts.

IndusInd Bank Savings Account

IndusInd customers have 13 variants of the savings account that they can choose from. Each type of account has exclusive benefits that can be availed by the account holder.

Savings Account Interest Calculator

Interest rates on savings accounts are calculated on a daily basis. The following formula is used to calculate the interest an account earns:

Interest rate = Daily closing balance x Rate of interest x (No. of days/365)

The following example will help illustrate the formula in use:

Mr. X has an opening balance of Rs.1 lakh at the beginning of the month. He makes a withdrawal of Rs.30,000 on the 9th day of the month. He deposits Rs.10,000 on the 20th day of the month.

Date Closing balance (Rs) Withdrawal (Rs) Deposit (Rs) 01.0X.20XX 1,00,000 - - 09.0X.20XX 1,00,000 30,000 - 20.0X.20XX 70,000 - 10,000 30.0X.20XX 80,000 - -

Assuming the monthly interest rate offered by the bank is 1%, the interest rate for that month will be calculated as follows:

Interest earned from day 1 to day 9: Rs.1,00,000 x 1/100 x 9/365 = 24.65

Interest earned from day 10 to day 19: Rs.70,000 x 1/100 x 10/365 = 19.17

Interest earned from day 20 to day 30: Rs.80,000 x 1/100 x 11/365 = 24.10

Interest earned for the month =24.65 +19.17 +24.10 = Rs.67.92

Post Office Savings Account

As the name suggests, a Post Office Saving Account is an Account which can be opened at a post office. Post Office Savings Accounts are quite similar to a regular bank savings account, but Post Office Savings Account have a stricter and more secure arrangement as far as the account holder’s funds are concerned. While a bank may not have branches in the every city, post offices are generally present even in the most remote of cities located in the regions that are usually not easy to access. Due to this very reason, Post Office Savings Accounts are now becoming increasingly popular as a an option for saving money. A Post Office Savings Account can be opened by an adult individual who is of Indian nationality. Minors above the age of 10 years can also open this account, or have a guardian open such an account on their behalf.

DoP Internet Banking

The Department of Post offers customers the facility of internet banking for carrying out banking related transactions online. There are various functions and features of the DoP internet Banking which are as follows:

  • Profile Customization - Under internet banking, users can customize their profile by changing their Sign-on' and transaction password, set account references under settings, update their Channel ID and also view personal details.
  • Accounts - Under the Accounts section, the user can view their account summary of various accounts such as their saving account, recurring Deposit account, PPF (Public Provident Fund) Account, TD (Time Deposit) Account and NSC (National Savings Certificate) Account. In addition to this, users can also view details of their loan on RD, loan on PPF and details of tax deducted at source.
  • Transactions - Under internet banking, users can perform a number of account related actions and make requests such as managing payees and billers, transfer funds not only within but also outside the DoP, make withdrawals from their PPF account, view their transaction history, put money into their PPF account or repay a loan on their PPF account, view any recurring instructions, deposit money into their RD account and repay the loan on their RD account.
  • General Services - The general services available under DoP internet banking include mails, mailing service related requests and inquiry requests.

Tax Exemption on Savings Account

Interest income of up to Rs.10,000 that arises out of interest on the balance in your savings account is tax free under Section 80TTA. This is applicable for all savings accounts across banks and even Indian Post Office savings bank accounts.

Other types of Deposit Accounts

Current Accounts

Current account, also known as trading account is opened by individuals or entities for business purposes. Due to multiple payments and receipts, traders, entrepreneurs, business firms, etc., may need to operate their bank accounts on a daily basis. So, a current account is an ideal solution for this particular category of people as it imposes minimal restrictions on the number of transactions taking place in a day. Current accounts can be opened in the name of any of the following:

  • Individuals
  • Two or more individuals (joint account)
  • Partnership firms
  • Proprietary concerns
  • Hindu Undivided Family
  • Associations, trusts, and clubs
  • Private and public limited companies
  • Government departments, boards, corporations, etc.

Fixed Deposit Accounts

A fixed deposit account is a financial instrument which offers an interest rate higher than that of a savings account. Investors can fix their deposits for a period ranging from a few days to 10 years and earn higher returns. Your fixed deposit account expires at the end of the agreed tenure for which your deposits have been fixed. Penalty charges will be levied by the banks for premature closure of a fixed deposit account. The rate of interest of a fixed deposit account may vary from one bank to another and it generally depends on the amount deposited, tenure, and prevailing market rates.

Recurring Deposit Accounts

It’s a type of deposit account provided by banks to people with a regular income. Investors will have to issue a standing instruction to debit a fixed amount from their savings and credit it to the recurring deposit account. A delay in regular payments will result in reduction of the interest payable at maturity. Banks also provide loan facility on recurring deposits to their customers and it can go up to 90% of the deposit value.

Comparison among Savings Account Vs Current Account Vs. Fixed Deposit Vs. Recurring Deposit

Savings Account Current Account Recurring Deposit Fixed Deposit
Purpose Surplus funds are deposited in the account for the purpose of saving. Deposits and withdrawals are made based on the business transactions carried out by the account holder. Monthly fixed installments are deposited towards the account. Lump sum amount is deposited on opening the account.
Tenure No set tenure No set tenure Deposits need to be made for a minimum of 6 months to a maximum of 10 years. Deposits can be opened for a minimum of 7 days to a maximum of 10 years.
Interest rates 3% to 7% p.a. Not applicable 5.50% to 8% p.a. 5.75% to 8.25% p.a.
Withdrawal limits Limited to 5-7 per month Unlimited daily withdrawals Not applicable Not applicable
Tax benefits Deductions can be claimed under Section 80TT interest earned up to Rs.10,000. Not applicable TDS Up to Rs.1.5 lakh can be claimed in tax deductions under section 80C of the Income Tax Act.
Loans Loans can be availed against a savings account Loans can be availed by select customers and it is referred to as ‘overdraft facility’ Loans can be availed against a recurring deposit. Loans can be availed against a fixed deposit.

Saving Account FAQ

  1. How is the rate of interest calculated on a savings account?

    Interest rates for savings accounts are calculated on the closing balance in the account on a daily basis. However, the interest is accumulated and is usually paid out by banks on a daily basis.

  2. What is the rate of interest offered for general savings account?

    Most of the banks offer 4% per annum for a no-frills savings account and the interest will be credited to your account on a half-yearly basis. However, the interest rate may vary depending on the type of savings account.

  3. Can savings accounts be held jointly?

    Yes, savings accounts can be held jointly by 2 or more individuals.

  4. What is BSBDA?

    Introduced by the RBI, Basic Savings Bank Deposit Account (BSBDA) requires minimal documentation (KYC Documents only) and has zero minimum balance conditions. Any resident Indian over 18 years of age can open a BSBDA account in a bank of their choice. The customers will be offered services like cash withdrawal, free ATM-cum-debit card and deposits.

  5. Are there any age restrictions for opening a savings account?

    For a regular savings account, account holders have to be 18 years old or above to open an account. However, banks offer savings accounts for minors that carry most of the basic features of a regular savings account.

  6. Are there any differences between savings accounts opened in private banks and public banks?

    There are a few differences between savings accounts held in private banks and public banks. However, these differences are with regard to interest rates and minimum balance requirement rather than the actual operation of the account.

  7. When is the interest earned on a savings account credited?

    Interest earned from the balance in a savings account is usually credited at the end of every quarter.

  8. How can money be deposited into a savings account?

    Money can be deposited in a savings account via cash, cheque, and demand drafts. They can be deposited directly at the bank using a deposit slip or at ATM drop-boxes.

  9. How can money be withdrawn from a savings account?

    Most banks offer debit cards that are linked with their savings account that permits account holders to withdraw funds from their account through an ATM. Account holders can also withdraw money from a savings account using withdrawal slips and cheques.

  10. How many withdrawals are permitted from a savings account each month?

    Most banks permit account holders to make a maximum of 6 to 7 withdrawals per month. However, these rules are mostly applicable to ATM withdrawals rather than withdrawals made through withdrawal slips and cheques.

  11. Are internet banking facilities provided for savings account transactions?

    Yes, almost all banks provide its savings account holders with internet banking facilities.

  12. Can nominees to a savings account be changed?

    Yes, nominees to a savings account can be changed as per the account holder’s discretion. A form, that can be obtained either from the bank branch or downloaded online, should be filled and submitted to the bank branch.

  13. Does a savings account have a set tenure?

    No, a savings account does not have a fixed tenure and can be operated by the account holder until their death.

  14. When does a savings account become dormant?

    If a savings account has no withdrawals or deposits made to the account for a period of 2 years, the account is considered dormant.

  15. Are there any restrictions placed on dormant accounts?

    Banks may at times deactivate certain services such as internet banking and mobile banking for dormant accounts.

  16. How can dormant savings accounts be reactivated?

    A dormant savings account can be activated by either contacting the bank branch, submitting a written request for reactivation, or carrying out a withdrawal or deposit transaction against the account.

  17. Are dormant accounts charged penalties for non-maintenance of the minimum average balance?

    No, dormant account does not incur any charges for non-maintenance of the minimum average balance. The penalty is only applicable to operational accounts.

  18. Can a person hold more than 1 savings account?

    Yes, there is no restriction on the number of savings account that a single person may hold.

  19. Does the interest earned on a savings account increase when individuals hold multiple accounts?

    No, the interest earned depends entirely on the balance maintained in the account. If an individual holds multiple savings accounts and maintains the minimum average balance, the interest earned collectively from those accounts may be lesser than the interest earned from one account.

  20. Do savings accounts have any tax benefits?

    Interest earned on a savings account is eligible for tax deductions up to Rs.10,000 under Section 80TTA. Any interest earned above this amount is taxable.

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  • HDFC Bank gets 2.5 lakh new customers during the lockdown

    HDFC Bank, during the lockdown, was able to add 2.5 lakh new customers in the last 40 days through the online facility which helps people open savings account instantly. The account is created using a limited KYC requirement provision. Once the account is opened, a customer will have one year to update all the details required.

    In April, the ‘Instant Account App’ was launched in the areas where lockdown was strictly imposed. Banks were classified as an ‘essential service’ but the strict lockdown prevented people from visiting banks. According to sources, all the 2.5 lakh accounts which were opened were new customers. The minimum average monthly balance requirement is Rs.10,000 for metro cities, Rs.5,000 for semi-urban cities and Rs.2,500 for rural cities.

    Most of the accounts which were opened were from the containment zones and red zones in various metro cities and urban areas. There was activity seen in the semi-urban and rural areas. The account is opened using the basic KYC details such as Aadhaar card number, valid PAN, OTP, etc.

    According to the RBI, people can opt for the Instant Account with limited KYC with a maximum balance of Rs.1 lakh.

  • 1-year FD interest rate of SBI less than savings accounts of most banks

    The interest rates of Fixed Deposits (FDs) and loans have been cut by banks on a regular basis for more than a year. However, savings account interest rates have also been reduced after the Reserve Bank of India (RBI) cut the repo rate by 75 bps.

    State Bank of India (SBI), the country’s largest bank, cut its savings account interest rates by 26 bps to 2.75% per annum. ICICI Bank reduced its savings account interest rates by 25 bps as well. The interest rates for balances of up to Rs.50 lakh is 3.25% and above Rs.50 lakh is 3.75%, respectively. In April, Kotak Mahindra Bank reduced its interest rates twice. Apart from savings accounts, banks have reduced FD rates on a regular basis as well. The FD rates of SBI was reduced by 25-50 bps. The one-year fixed deposit in SBI is 5.70%. This is the first time the interest rates have been reduced to less than 6% since August 2004. The interest rate offered by SBI is less than the savings account interest rates of several banks. Some of the banks that offer a higher interest rate are IndusInd Bank, DBS Bank, Bandhan Bank, RBL Bank, and IDFC Bank. However, the interest rates are higher only under certain conditions.

  • State Bank of India cuts interest rates on savings accounts

    State Bank of India has cut interest rates on savings accounts. It is now a rationalised interest rate across all savings accounts to 3%. This will be applicable for 44.51 crore account holders. The current interest rate for deposits of up to Rs.1 lakh is 3.25% while for deposits of above Rs.1 lakh it is 3%. This will now be a flat 3% across all deposits and all accounts. The bank has also waived the charges for maintaining an average monthly balance on all the 44.51 crore savings accounts. The current average monthly balance in rural, semi-urban, and metro areas is Rs.1,000, Rs.2,000, and Rs.3,000 respectively. The penalty for non-maintenance of the Average Monthly Balance used to range from Rs.5 to Rs.15 plus applicable taxes. SMS charges have also been waived. The bank also reduced the interest rates for fixed deposits across certain tenors. The interest on retail term deposits of less than Rs.2 crore has been reduced by 10 to 50 basis points across certain tenors.

  • Yes Bank looking to reduce the savings account interest rate

    Following an infusion in capital and a change in management, Yes Bank is now looking to bring down the savings account interest rate to less than 6% and cut down deposits. According to the details available on the official website of Yes Bank, in case the account balance is Rs.1 lakh and above, the savings rate is 6%. According to a source, the decision in regards to the savings rate will be considered by the end of March. After the withdrawal cap of Rs.50,000 was removed on 18 March 2020, the bank is facing a challenge if customers want to withdraw more money. On 5 March 2020, the Reserve Bank of India (RBI) enforced a restriction on Yes Bank where its customers can withdraw only up to Rs.50,000. According to a tweet made by Yes Bank, the bank has extended its working hours by another hour for public convenience.

  • SBI removes minimum balance requirement and cuts savings account interest rate

    State Bank of India (SBI), the country’s largest bank, has reduced the interest rate for all savings accounts to 3% and has also removed the minimum balance requirement.

    On 11 March 2020, the fixed deposit interest rates and MCLR were reduced by SBI across various tenures. The bank has over 44.51 crore savings bank accounts. The bank also said that it has waived the SMS charges to adopt the ‘Customers First’ approach. This will bring a huge relief to all its customers. According to a statement made by SBI, they have reduced the interest rate to 3% for all brackets. Currently, the interest rates for deposits up to Rs.1 lakh and above Rs.1 lakh are 3.5% and 3%, respectively. At the moment, SBI customers who live in the metro, semi-urban, and rural areas must maintain a minimum balance of Rs.3,000, Rs.2,000, and Rs.1,000, respectively. The bank used to levy a charge ranging between Rs.5 and Rs.15 plus taxes in case the minimum amount is not maintained. ICICI Bank said on its website that the interest rates for an account balance of less than Rs.50 lakh and more than Rs.50 lakh will be 3.5% and 4%, respectively. Many private lenders have a minimum required balance of Rs.10,000.

  • Latest interest rates on bank savings accounts in small finance banks

    Each bank has a certain minimum balance that is required to maintain a savings account which may differ from bank to bank. If the minimum balance is not maintained, a penalty would have to be paid. The rate of interest also differs from bank to bank. Some of the latest interest rates from small finance banks in India are as follows: IDFC First Bank offers an interest rate of 6.00% p.a. for a balance of up to Rs.1 lakh. For balances above Rs.1 lakh, the interest rate offered is 7.00% p.a. Ujjivan Small Finance Bank offers an interest rate of 4.00% p.a. for balance of up to Rs.5 lakh, 5.50% p.a. for balance between Rs5 lakh to Rs.50 lakh, 6.75% p.a. for balance amounts that range from Rs.50 lakh to Rs.5 crore, and 7.00% for balance that exceeds Rs.5 crore. Utkarsh Small Finance Bank offers interest rates of 7.00% p.a. for balance up to Rs.25 lakh, 7.25% p.a. for incremental balance between Rs.25 lakh to Rs.10 crore, 7.75% p.a. for incremental balance that is above Rs.10 crore, and 7.00% for any balance up to Rs.25 lakh. Equitas Small Finance Bank offers interest rate of 4.50% p.a. for balance up to Rs.1 lakh, 6.00% p.a. for up to Rs.1 crore, 7.00% for balance between Rs.1 crore and Rs.5 crore, 7.25% for balance between Rs.5 crore and Rs.30 crore, and 7.50% for amount between Rs.30 crore and Rs.50 crore.

  • Important Things to Know About SBI Net banking

    State Bank of India has issued important dos and don’ts for its customers to know about using its net-banking facilities. Some of these points are to make sure that your computer is free of malware. It is also important to change passwords frequently. Never reveal passwords to anyone. Card details should also not be revealed to anybody. It is important to also ignore any communication, whether by phone or email, that requires you to divulge your passwords. Before using SBI’s net banking, it is important to make sure of the following points: check that the SBI URL starts with ‘'https’'. The status bar or address bar should show the ‘'padlock’' symbol. You can click on this to view the security certificate. The address bar should turn green which shows that the website is secured and has the SSL Certificate which means the Extended Validation Standard. You should also be aware of phishing attacks, which is soliciting your personal confidential account information through emails, SMS, or phone calls. Any such phishing attempts should be reported to the email address: report.phishing@sbi.co.in. If such confidential information has been revealed accidentally, the next step is to lock your net banking user access immediately.

  • Lowered key lending rates followed by the repo rate cut by RBI

    The Reserve Bank of India (RBI) has recently decreased the interest rates by 35 basis points (bps). Following this rate cut, a number of lenders have slashed their benchmark lending rates. The banks have been rather quick in passing on the benefits of the rate cuts to their customers. The cut in the rates basically means that the loan products are going to be cheaper.

    The latest rate cut which has announced by RBI is the fourth rate cut in this calendar year. Overall, the repo rate has been slashed by 110 basis points. The banks which have already cut down their benchmark lending rates are – State Bank of India (SBI), IDBI Bank, Bank of India (BOI), Bank of Maharashtra (BOM), Syndicate Bank, Allahabad Bank, Indian Overseas Bank (IOB), and Bank of Baroda.

  • Credit card dues can be deducted from a savings account if not paid on time

    HDFC Bank can recover the credit card dues from the savings account a customer holds with the bank automatically, if the dues have been outstanding for a long period of time. According to the terms and conditions, the bank does not need to inform the customer about the deduction made from their savings bank account to pay the bill.

    According to the National Consumer Disputed Redressal Commission in New Delhi, the terms and conditions of HDFC Bank states that the bank can at any time without notice have lien and have the right to set off on all monies belonging to the card member and/or add-on card member standing to credit in any account/custody of the bank, if upon demand by the bank, the balance amount on the account is not repaid within the prescribed time.

  • SBI customers required to maintain Rs.3,000 as AMB in their savings account

    Country’s largest lender State Bank of India (SBI) has recently reduced the rate of interest on its savings account (SA) to 3.25% for balances less than Rs.1 lakh effective 1 November 2019. Depending on the type of account, customers holding savings account with SBI are required to maintain a certain amount as an average monthly balance (AMB). Failure to maintain the AMB will attract penalty charges that will depend on the areas you are residing, whether it is metro, semi-urban, and rural areas. If you hold a savings account in SBI branches in metro and urban areas, you will be required to maintain Rs.3,000 as AMB. In semi-urban branches, the AMB requirement is Rs.2,000 while those in rural areas will need to maintain a minimum balance of Rs.1,000. If you fail to maintain the AMB in the metro and urban areas, you will be charged a penalty ranging between Rs.10 plus GST and Rs.15 plus GST. In semi-urban and rural branches, the penalty charges are Rs.7.5 plus GST to Rs.12 plus GST and Rs.5 plus GST to Rs.10 plus GST respectively.

GST of 18% is applicable on all banking products and services from July 1, 2017 onwards.

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Savings Account Reviews

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  • Kotak Debit Card
    "Worst bank ever"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Itâ??s not even worth one star rating. This is the second time I had applied and got an atm card and itâ??s again showing itâ??s various way to not trust again. After few months the card will start declining wherever I have to pay, will say that the mpin is wrong even if itâ??s right, if you want to pay through google or paytm also it wonâ??t work. This was the last time I got any card from this bank.
    Was this review helpful? 35
    , bangalore
    Reviewed on Mar 15, 2020
  • ICICI Bank
    ICICI Bank Debit Card
    "The One just a basic saving account"
    ICICI BANK
    0.5 2.0/5 "Expected more"
    I received The One titanium debit card recently for my new saving account. I tried to use it for 10% off in recent amazon sale but cannot avail the discount on it. When I checked with customer care, I have been told that this just a basic card and bank do not offer discounts on it, better upgrade card to coral debit card. So, I do not recommend The One saving account.
    Was this review helpful? 88
    , new delhi
    Reviewed on Oct 20, 2019
  • ICICI Bank Debit Card
    "Good"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I am using ICICI debit card for almost 10 years. They have provided me a domestic card. There is no yearly charges because of my salary account. There is no benefits and the accessibility of the card is good. The daily withdrawal limit is sufficient. ATM's are pretty good.
    Was this review helpful? 119
    , kolkata
    Reviewed on May 12, 2019
  • YES Bank Debit Card
    "Good"
    YES BANK
    0.5 4.0/5 "Great!"
    I think its nice to apply, it has been very fast and easy let's see what happens next if its open means I'll be very much happy person, pleas let me no soon that I can be a customer of this bank I had pan card permanent account number and I didn't have addar card though.
    Was this review helpful? 132
    , hyderabad
    Reviewed on Mar 20, 2019
  • Kotak Debit Card
    "Better"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I am having a Platinum Debit card from Kotak Mahindra Bank. The daily withdrawal limit is sufficient. I don't get any benefits on the card but its easily accessible everywhere. I got a hidden charges of 150 rupees which was debited from my account. There is no charges for other ATM swipes and there is no limitation.
    Was this review helpful? 156
    , mumbai
    Reviewed on Jan 28, 2019
  • Kotak Debit Card
    "Worst Kotak 811 services"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Opened an account in December 2018 not received any call from customer care for document completion till yet also visited the nearest branch and no action has been taken . Worst services of this bank . Even the executive and staff has not been responsible and their behavior is also very rude.
    Was this review helpful? 157
    , new delhi
    Reviewed on Jan 16, 2019
  • YES Bank Debit Card
    "Good"
    YES BANK
    0.5 4.0/5 "Great!"
    I think its nice to apply, it has been very fast and easy let's see what happens next if its open means I'll be very much happy person, pleas let me no soon that I can be a customer of this bank I had pan card permanent account number and I didn't have addar card though.
    Was this review helpful? 105
    , bangalore
    Reviewed on Oct 03, 2018
  • YES Bank Debit Card
    "SUPER BANK"
    YES BANK
    0.5 5.0/5 "Blown Away!"
    I've been using the YES BANK Edge credit card for a while. The Value of the points are really good. I've already accumulated more than 15000 reward points. I am really impressed with the card and their services. I never had any issues with them.
    Was this review helpful? 72
    , hyderabad
    Reviewed on Sep 19, 2018
  • YES Bank Debit Card
    "What to write? You can write a review about any Loan produc"
    YES BANK
    0.5 5.0/5 "Blown Away!"
    awesome great job i like your services i feel happy u provided help to need a urgent way tnq so much tnq bankbazar first time i am online visitor i cant explain how much i m happy bankbazar i would like too u say thnku bankbazaar your service is too much fast rapid
    Was this review helpful? 44
    , bangalore
    Reviewed on Mar 11, 2018
  • Kotak Debit Card
    "Good Bank"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I have a Kotak Bank i opened through Online portal. It is Very Easy to Open .Zero Rupees Charges.I ordered for a Debit card of kotak bank i got it delivered.Kotak App is Very User Friendly to Everyone.Zero balance maintain No Extra Charges..Quite Good App
    Was this review helpful? 99
    , bangalore
    Reviewed on Feb 16, 2018
  • Kotak Debit Card
    "Decent Credit Card"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I have a Salary account with them and the bank has offered a complimentary Credit card on the basis of this account. They have given me a Credit Limit of Rs.2.5 Lakhs, which I felt is quite a good one to have. One thing which let me down over here is their high interest rate. Also an added advantage is, they have good reward points system available with them.
    Was this review helpful? 58
    , chennai
    Reviewed on Jan 23, 2018
  • Kotak Debit Card
    "Good"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    I am using domestic debit card of Kotak Mahindra Bank. The daily withdrawal limit was 25,000 rupees which was satisfactory. I am using this debit card for the last six months. There is no charge for other ATM swipe. ATM facilities are good and enough.
    Was this review helpful? 66
    , navi mumbai
    Reviewed on Jan 04, 2018
  • ICICI Bank Debit Card
    "Good"
    ICICI BANK
    0.5 4.0/5 "Great!"
    I have converted my reward points into cash many times. It was very good. I hold Platinum Visa debit card. The withdrawal limit is more than 1L which is really good. My debit card is linked with Payback account on every purchase I used to get lot of points.
    Was this review helpful? 72
    , bangalore
    Reviewed on Nov 16, 2017
  • ICICI Bank Debit Card
    "Good service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    ICICI Bank provide good service. I m using it as my salary account frim 2012. Very minimal number of time I've visit bank for any support. Net banking service is really good and debit card most of the time I use it shopping or petrol bunk. Totally service is goods.
    Was this review helpful? 62
    , bangalore
    Reviewed on Nov 09, 2017
  • Kotak Debit Card
    "Good service"
    KOTAK MAHINDRA BANK
    0.5 4.0/5 "Great!"
    Within 4days of time I got the car loan from Kotak Mahindra bank. The customer support is good with Kotak mahindra bank. The rate of interest which they have offered was low, when compared with other banks. The required loan amount has been disbursed and I am happy with it.
    Was this review helpful? 64
    , hyderabad
    Reviewed on Oct 16, 2017
  • ICICI Bank Debit Card
    "Great banking service and good previlage"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have recently upgraded my debit card to CORAL and not sure about the type of card. I am happy with withdrawal limit. The customer service and response was quick. ATM service is more enough, even after 4 transaction there is no extra charges. The mobile application is good and they don't charge extra for IMPS transfer. Specialty of the card is One Plus One Ticket on movie.
    Was this review helpful? 44
    , bangalore
    Reviewed on Oct 14, 2017
  • ICICI Bank Debit Card
    "According to your use"
    ICICI BANK
    0.5 4.0/5 "Great!"
    My friend use icici coral debit card it charges 499 +gst every year it gives good offer like buy one get one free on movies per month and payback points and refund on petrol pump if used debit card for payment but i want to say after all this if you are doing this things then only use this card becuse 577 per year is too much if you are not using this benefits
    Was this review helpful? 46
    , pune
    Reviewed on Oct 04, 2017
  • RBL Bank Debit Card
    "Ratnakar Bank Debit card "
    RATNAKAR BANK
    0.5 5.0/5 "Blown Away!"
    Ratnakar Bank debit card facility is too good. Very useful options for using debit cards at different pos and online payment system. Bank customers care facilities are also prompt in service with customer. RBL is rising bank in all villages.
    Was this review helpful? 150
    , pune
    Reviewed on Aug 21, 2017
  • ICICI Bank Debit Card
    "Excellent Service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I am using ICICI debit salary account for the past 3 years and the service from ICICI and executives of ICICI was very helpful and service was really nice and the transactions were very fast also I am getting my OTP pin very fast compare to others and they providing me a very excellent service.
    Was this review helpful? 69
    , bangalore
    Reviewed on Aug 21, 2017
  • Kotak Debit Card
    "Kotak Mahindra Bank Fraud Services"
    KOTAK MAHINDRA BANK
    0.5 0.5/5 "Unacceptable"
    Kotak Mahindra Bank has **fraud banking services**. Rs. 800+ charge for other ATM Withdraws. 10000+ Charge for not maintaining minimum balance. 1000+ for delayed credit card payments. One Purchase = Service Tax+Conversion Charge+Interest Charge+Actual MRPâ?¦. **Close all your accounts** of Kotak Mahindra Bankâ?¦
    Was this review helpful? 135
    , bangalore
    Reviewed on Apr 06, 2017
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