Maintaining savings accounts allows us to have our extra cash on hand while also earning interest from the bank. Savings account interest rates have trended higher in recent times as the economy's interest rates have moved northward.
The RBI increased the repo rate again by 50 basis points to 5.4 percent during the monetary policy meeting held on August 5, 2022, continuing the rate rise cycle that began in May 2022.
However, when the RBI increases the repo rate, it is probably a good sign for depositors who put their money in savings accounts and fixed deposits (FDs).
For people looking to choose between the various savings accounts, here are the top 12 banks offering highest interest rates on savings accounts.
|Name of banks||Rates of Interest (p.a.)|
|Yes Bank||4.00% - 5.00%|
|IDFC Bank||3.00% - 5.00%|
|South Indian Bank||2.35% - 4.50%|
|Indusind Bank||4.00% onwards|
|DBS Digibank||3.00 - 4.00%|
|Canara Bank||2.90% - 3.50%|
|Axis Bank||3.00% onwards|
|Standard Chartered Bank||2.75% onwards|
|State Bank of India||2.70%|
Note: The given list has been compiled from bankbazaar as of August 2022.
Among the major Indian banks, IDFC and Yes Bank offer the best interest rate of up to 5 percent for a savings account with a minimum balance requirement of Rs10,000, closely followed by South Indian Bank at 4.50 percent.
READ MORE: RBI Policy: With interest rate hike, FD interest rates to follow
In the zero balance account category, the highest interest rates are offered by DBS, Kotak and Axis Bank at 4 percent, 3.5 percent and 3 percent respectively.
A savings account allows you to pick according to your needs while also providing you with incentives on all of your transactions. In this fast pacing digital world, you can open a savings account online from the comfort of your home. However, consider every aspect before deciding on the bank where you want to create a savings account.