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Savings Account Interest Rates

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

Here is a list of savings account interest rate offered by all major Indian Banks.

Bank / Product Interest Rate
RBL Bank Savings Account Daily Balance Above Rs. 10 lakhs - 7. 1% per annum Daily Balance Above Rs. 1 lakh - 6. 1 % per annum Daily balance upto Rs.1 lakh - 5. 1 % per annum
Kotak Mahindra Bank Savings Account 6% per annum
Yes Bank Savings Account 6% per annum on Savings Account balances below Rs.1 crore
Bandhan Bank Savings Account Daily balance upto Rs.1 lakh. Interest paid half yearly - 4. 25% per annum Daily balance above Rs.1 lakh. Interest paid half yearly - 5% per annum
Axis Bank Savings Account 4% per annum
Lakshmi Vilas Bank Savings Account Daily Balance Upto Rs.5 lakh - 5% per annum Above Rs.5 lakh - 6% per annum
IndusInd Bank Savings Account Daily balance upto Rs.1 lakh - 4% per annum Daily balance above Rs.1 lakh but less than Rs.10 lakhs - 5% per annum Daily balance above Rs.10 lakhs - 6% per annum
HDFC Bank Savings Account 4% per annum
ICICI Bank Savings Account 4% per annum

Savings Account is one of the basic financial products that everyone must have and use. A savings account will let you save money, transfer funds, withdraw money and also will give you interest on the funds that you have in your account. Not many investment products in the market give you the dual benefit of liquidity and interest. But, a savings account will not only help you save some money but will also let you withdraw cash whenever you need it.

Depositing money in a savings account will help you realize your short term financial goals with ease. With banks offers different types of savings account such as specialized accounts for kids, savings account for women and pensioners savings account, you can choose a savings account that fits your lifestyle and usage.

One of the key points to note about a savings account is its interest rate. Read on to find more about how savings account interest rate is calculated and savings account interest rates for major Indian banks.

How is the Savings Account Interest Rates Calculated?

As per the new RBI mandate, interest on savings account is calculated on a daily basis based on your closing amount. The interest accumulated will be credited to your account on half yearly basis or quarterly basis depending on the savings account type and the bank’s rule. However, recently, the Reserve Bank of India has advised the banks to credit the interest on Savings Bank account on quarterly basis as it will be more beneficial to the customers.

Generally, the formula described below is used to calculate the monthly interest for a general savings account.

Monthly Interest = Daily Balance * (Number of days) * Interest / (Days in the year)

Assuming the daily balance is Rs. 3 lakhs and the interest on savings account is 4 per cent per annum, the calculation will work out as follows.

Monthly Interest = 3 lakhs * 30 * (4/100) / 365 = Rs. 986

Benefits of a Savings Account

There are countless benefits that a savings account will offer you. Here are some of the major advantages of maintaining a savings account.

  • When you deposit money in a savings account, you can be sure that the money is secure. Whenever there is a financial emergency in future, the money can be acquired.
  • The money that is deposited in a savings account can be accessed at any point of time. In case of a sudden requirement, you can withdraw cash from your bank or from the debit card without any hassles.
  • A savings account will let you start investing with minimum cash. All you have to do is open a savings account with the minimum required deposit and start deposit funds whenever possible.
  • With a savings account, banks also give you the access to internet banking and phone banking which will open a whole new world of quick transactions. You can transfer funds using NEFT & IMPS, pay utility bills, check transactions and link credit card accounts to your savings account using Internet Banking facility without any hassles.
  • Select banks offer personal insurance benefits with savings account.

Minimum Balance Requirements in Savings Account

If you read the fine print for a savings account, you will come across “Minimum Average Balance Requirements”. Many banks use the terms minimum daily balance, minimum quarterly balance or just minimum balance. Average Balance means the amount that has to be maintained in your savings account over a certain period of time. Average Balance is calculated by summing up the everyday balance and dividing it by the number of days in the defined period.

For example, if a savings bank account has an average quarterly balance of Rs. 3000, the average of the daily balance in your account for that quarter should have been Rs. 3000. Instead, you can also have Rs. 5, 40, 000 as the balance for one day of that quarter.

If you do not maintain the specified balance requirements, you will have to pay a non - maintenance penalty.

Almost all major Indian banks now offer Basic Savings Bank Deposit Account (BSBDA) which is a zero balance account. No penalty will be levied and you can use your BSBDA account as a normal savings account.

TDS on Savings Account Interest

The interest amount that you gain from a savings account is referred to as “Income from Other Sources”. This interest must be filed for Income Tax Returns. But, TDS is not applicable for a savings account as per section 194 A of IT Act . Savings Bank Account Interest amount exceeding Rs. 10, 000 will be taxed at marginal tax rate of the concerned account holder. It is also important to note that interest from a savings account is not an exemption but a deduction. The deduction is allowed for interest incomes up to Rs. 10, 000 only and for this purpose, the savings account must be held with a recognized public or private bank or with the Post Office.

Saving Account Interest Rate Calculator

A Savings Account Interest Rate Calculator will let you find out the interest that you will get from a savings account. In a Savings Account Interest Rate Calculator, you will be required to enter information like average balance and interest rate offered by the bank. You will also be required to select if the interest will be credit on a monthly, quarterly, half yearly or yearly basis. The calculator will output the interest that you will get for the daily balance and the savings account interest rate.

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

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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Savings Account Reviews

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  • Bank Bazaar Debit Card
    "Best servise for bank bazar"
    YES BANK
    0.5 4.5/5 "Excellent!"
    Bank bazar service is best for cobil scor provide persnal loan , atm card ,etc. ... ....................................................................................................................thanks bank bazar
    Was this review helpful? 5
    , ambala
    Reviewed on Mar 07, 2019
  • Bank Bazaar Debit Card
    "san rem"
    YES BANK
    0.5 4.0/5 "Great!"
    Thank you very much ........ It's very simple to open new account ... And I am very comfortable with this your bankbazar site and app..... And my self I recommend to my frnds also... For credit cards also show which is suitable for me.. thanks alot for your service
    Was this review helpful? 20
    , chennai
    Reviewed on Feb 18, 2019
  • Bank Bazaar Debit Card
    "Experience"
    YES BANK
    0.5 3.5/5 "Pretty good"
    First time experience of opening bank account Let's see what happens. I hope everything going good. I will refer my friends to if IM able to opening my account through bank bazaar. And also need help in mutual funds investment. Thanks.
    Was this review helpful? 16
    , new delhi
    Reviewed on Feb 17, 2019
  • Bank Bazaar Debit Card
    "Customer satisfaction "
    YES BANK
    0.5 5.0/5 "Blown Away!"
    I visited a number of sites on regards in the above matter, but what ever the response I got through bank bazar was marvellous and extra ordinary.... Thanq for providing such easy platform for getting in touch to obtain the debit cards so easily.
    Was this review helpful? 10
    , hyderabad
    Reviewed on Feb 16, 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? 36
    , 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? 45
    , new delhi
    Reviewed on Jan 16, 2019
  • Bank Bazaar Debit Card
    "NICE "
    YES BANK
    0.5 3.0/5 "Satisfactory"
    I am impressed with the quality of the service that is being offered here. It was so easy to apply for the Debit Card. Something of this nature should truly be an easy thing and because of Bank Bazaars commitment to help me, I can safely say, "Yes"! I have gotten through!!
    Was this review helpful? 31
    , bangalore
    Reviewed on Jan 12, 2019
  • Bank Bazaar Debit Card
    "saving account is life saving "
    YES BANK
    0.5 4.5/5 "Excellent!"
    Thank you very much ........ It's very simple to open new account ... And I am very comfortable with this your bankbazar site and app..... And my self I recommend to my frnds also... For credit cards also show which is suitable for me.. thanks alot for your service
    Was this review helpful? 26
    , udaipur
    Reviewed on Jan 11, 2019
  • Bank Bazaar Debit Card
    "veer"
    YES BANK
    0.5 3.5/5 "Pretty good"
    Thank you very much ........ It's very simple to open new account ... And I am very comfortable with this your bankbazar site and app..... And my self I recommend to my frnds also... For credit cards also show which is suitable for me.. thanks alot for your service
    Was this review helpful? 27
    , chennai
    Reviewed on Jan 11, 2019
  • Bank Bazaar Debit Card
    "Regarding debit card"
    YES BANK
    0.5 4.0/5 "Great!"
    It's good to have a debit card online. It makes the person able to travel anywhere in the world without carrying the bag of money. It creates the safety of money and person has more faith on it. It makes the person able to face any money transaction related problems.
    Was this review helpful? 22
    , jaipur
    Reviewed on Jan 10, 2019
  • Bank Bazaar Debit Card
    "Savings account is mostly i am using"
    YES BANK
    0.5 5.0/5 "Blown Away!"
    I am impressed with the service provided by Bankbazaar.com because they are mostly provide the offers and best deals and gifts also providing so many of the people are choose the relevant bank for shopping, movie ticket etc .and travel..so car loan bike loan are provided to impress people.
    Was this review helpful? 33
    , chennai
    Reviewed on Jan 04, 2019
  • Bank Bazaar Debit Card
    "Thank you"
    YES BANK
    0.5 4.0/5 "Great!"
    Thank you very much ........ It's very simple to open new account ... And I am very comfortable with this your bankbazar site and app..... And my self I recommend to my frnds also... For credit cards also show which is suitable for me.. thanks alot for your service
    Was this review helpful? 30
    , chennai
    Reviewed on Dec 30, 2018
  • Bank Bazaar Debit Card
    "Service"
    YES BANK
    0.5 4.5/5 "Excellent!"
    I am impressed with the quality of the service that is being offered here. It was so easy to apply for the Debit Card. Something of this nature should truly be an easy thing and because of Bank Bazaars commitment to help me, I can safely say, "Yes"! I have gotten through!!
    Was this review helpful? 38
    , new delhi
    Reviewed on Dec 29, 2018
  • Bank Bazaar Debit Card
    "DC REVIEWS"
    YES BANK
    0.5 3.5/5 "Pretty good"
    hi this is manikanta iam really happy to open this account and easy to create my account. Iam waiting for my new account for this bank ,.and am really impressed this bank and giving personal loan also I would like to thank everyone who are present there.
    Was this review helpful? 27
    , chennai
    Reviewed on Dec 27, 2018
  • Bank Bazaar Debit Card
    "Thank you"
    YES BANK
    0.5 4.5/5 "Excellent!"
    Thank you very much ........ It's very simple to open new account ... And I am very comfortable with this your bankbazar site and app..... And my self I recommend to my frnds also... For credit cards also show which is suitable for me.. thanks alot for your service
    Was this review helpful? 26
    , hyderabad
    Reviewed on Dec 26, 2018
  • Bank Bazaar Debit Card
    "Super "
    YES BANK
    0.5 5.0/5 "Blown Away!"
    Fantastic method quick response neat order for the processing given below perfect rules and regulations have lot of the security question and the answers given to be easily identify no if question is more and very simple to keep in memory as well.
    Was this review helpful? 35
    , tiruchirapalli
    Reviewed on Dec 25, 2018
  • Bank Bazaar Debit Card
    "King of to apply debit card "
    YES BANK
    0.5 5.0/5 "Blown Away!"
    Wonderful chance to apply debit card to use the bank opportunity to apply debit card and also all the people to apply debit card for this bank so easy to get along with and without the people that I have been super busy with work and school work done
    Was this review helpful? 40
    , vijayawada
    Reviewed on Dec 21, 2018
  • Bank Bazaar Debit Card
    "Very neat and quick formalities "
    YES BANK
    0.5 5.0/5 "Blown Away!"
    Very fast registration done. It did not askany questions and moreover the drop down menu is gud enough to choose. Great service with great name .i will always recommend this to all my friends. It's quick. Great keep up the good work.bank bazaar was very responsive
    Was this review helpful? 40
    , bangalore
    Reviewed on Dec 14, 2018
  • Bank Bazaar Debit Card
    " i am reyaly happy to and easly i creat .nice responsess lik"
    YES BANK
    0.5 4.5/5 "Excellent!"
    hi this is manikanta iam really happy to open this account and easy to create my account. Iam waiting for my new account for this bank ,.and am really impressed this bank and giving personal loan also I would like to thank who are there every one
    Was this review helpful? 50
    , bangalore
    Reviewed on Dec 05, 2018
  • Bank Bazaar Debit Card
    "Let's see wat happens filled the application"
    YES BANK
    0.5 5.0/5 "Blown Away!"
    Hi Hi Let's see wat happens filled the application for zero balancaccount if it happens to be true then I will be the luckiest person and will be very thankful to the bankbazaar,kindly help me in opening this account .thakur vijayender Singh hi
    Was this review helpful? 41
    , hyderabad
    Reviewed on Dec 03, 2018
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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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