Following the Reserve Bank of India’s (RBI) two consecutive repo rate hikes i.e. in May and June of cumulative 90 basis points to 4.9 percent (100 basis points = 1 percentage point), several private banks including Axis Bank, Kotak Mahindra Bank, HDFC Bank and others raised interest rates on savings accounts. Smaller and new private banks offer rates up to 6.75 percent on savings account, which is higher compared to leading private banks.
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Make a practice to keep part of your surplus income in savings accounts for liquidity and emergencies during uncertain times. Here are the private banks offering the best interest rates on savings accounts. The data is compiled by BankBazaar.
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DCB Bank offers interest rates of up to 6.75 percent on savings accounts. Among private banks, this bank offers the best interest rates. The minimum balance requirement is Rs 2,500 to Rs 5,000.
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RBL Bank is offering interest rates up to 6 percent on savings accounts. The average monthly balance requirement is Rs 2,500 to Rs 5,000.
IDFC First Bank is offering interest rates up to 6 percent on savings accounts. The average monthly balance requirement is Rs 10,000.
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Bandhan Bank is offering interest rates up to 6 percent on savings accounts. The monthly average balance requirement is Rs 5,000.
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Yes Bank is offering interest rates up to 5 percent on savings accounts. The average monthly balance requirement is Rs 25,000.
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Small and new private banks are offering higher interest rates on savings accounts compared to leading private and public sector banks to acquire new retail customers. You should choose a bank with a long-term track record, good service standards, a wide branch network, and ATM services across cities; a higher interest on savings accounts would be a bonus.
The interest rate on savings accounts for all BSE-listed private banks are considered for data compilation. BankBazaar compiled the data as of June 15, 2022. 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 is 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.
