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Savings account are the most important and common place for any individual in India to keep their money safe. It also earns you interest along with safety. But there are multiple banks where you can open savings account. How to select the best bank for savings account in India, that provides you the highest interest and is the safest?
We in the blog have the perfect answer for this. We have come with a list of 5 best bank for savings account in India for an individual in the year 2022. After surveying a lot of different banks, we have come to this final list by considering the safety and reputation of the bank.
Contents
What is a savings bank account?
A savings account is a type of bank account that allows you to deposit money. But unlike FD, you can withdraw your money from it any time. The banks pay you compounding interest on the balance of these accounts. Most banks offer an ATM/Debit card linked with your account, with which you can pay online, offline or withdraw money from ATMs.
Top 5 best bank for savings account in India 2022 for individual
We have selected 5 Banks which are safest and most popular and thus can be considered as best bank for savings account in India. We are arranging the banks according to the rate of interest it offers in their savings account. The highest being at number 1.
There are many other banks as well that might provide high interests, but we have selected these as we are also focusing on the bank’s reputation, popularity, age, infrastructure and safety. We are also providing the table of interests for each bank which shows how much interest if offers for how much money saved.
1. RBL Bank Savings Account
RBL or Ratnakar Bank is a private sector bank that gives the highest interest now in the market on savings account. There are different types of savings account which will give the same rate of interest structure but features and minimum balance requirement differs. The more the features more is the minimum balance needed to be maintained.
This bank is at the top of the list of “best bank for savings account in India” only because of its high interest rate. The bank is a well established and RBI approved. RBL was founded in the year 1943, having its headquarters in Mumbai. But its popularity among common people is a bit less, though recently RBL has become popular.
| Daily balance | Rate of Interest |
| Upto Rs. 1 lakh | 4.25% |
| Above Rs. 1 lakh upto Rs. 10 lakh | 5.50% |
| Above Rs. 10 lakh and upto Rs. 3 Crore | 6.25% |
| Above Rs. 3 Crore upto Rs. 5 Crore | 6.25% |
2. Kotak Mahindra Bank
Kotak Mahindra Bank is also one of the best bank for savings account in India. The bank provides better interest rates compared to other more popular banks in India. This bank is also safe and RBI approved, founded in the year 2003, with its headquarters in Mumbai.
It is a popular bank with different types of savings account schemes, but all having the same interest rate structure. Kotak has a zero balance account facility.
| Daily balance | Rate of Interest |
| Upto Rs. 1 lakh | 3.50% |
| Above Rs. 1 lakh | 3.50% |
3. HDFC Bank
HDFC Bank is India’s largest private sector bank and can be a good choice if you are searching for best bank for savings account in India. It was established in the year 1994 and has its headquarters in Mumbai. The interest is moderate but better than public sector banks. There are multiple savings account schemes to select from according to your need. It too has a hassle-free internet banking and mobile banking facility.
The interest will be calculated on the daily balances maintained in your account and will be paid at quarterly intervals.
| Daily balance | Rate of Interest |
| Less than Rs. 50 lakhs | 3.00% |
| Rs 50 Lakhs to less than Rs 1000 Cr | 3.50% |
| Rs 1000 Cr and Above | 4.50% |
4. Axis Bank
Axis Bank is one of the most popular private sector banks in India which was formerly known as UTI Bank. Axis bank has its headquarters in Mumbai and was established in year 1993. It’s a famous bank and very much trustworthy. Has smooth application and internet banking facilities.
The interest rate is not too high, but better than public sector banks. It too has a lot of savings account schemes, from which you can select the one you like. The interest rate structure is similar for most of the accounts, with difference in added features and minimum average monthly balance amount that needed to be maintained. Axis has zero balance account facility and is in our list of best bank for savings account in India.
Floor price for all the Repo linked slabs is revised from 3.60% p.a. to 3.50% p.a. The interest is calculated basis incremental balance slabs. For rates on amount of INR 2500 Cr and above, please contact the branch official. Refer to our FAQ section if you want to know what is repo.
| Daily balance | Rate of Interest |
| Less than INR 50 Lacs | 3.00% p.a. |
| INR 50 Lacs and up to less than INR 10 Cr | 3.50% p.a. |
| INR 10 Cr and up to less than INR 100 Cr | Repo + (-0.65%) Floor rate of 3.50% applicable |
| INR 100 Cr and up to less than INR 200 Cr | Repo + (-0.50%) |
| INR 200 Cr and up to less than INR 2,500 Cr | Repo + (-0.50%) |
5. State Bank of India
Nothing new to share about State Bank of India (SBI). This is the best among the public sector banks. This is the only bank which can compete for its features and technology and even win the battle with all other banks including private sector banks.
The interest rate is a bit on the lower side as it’s a public sector bank. But the trust and safety are the best in class for this bank. This is the reason SBI makes its place in this list of “Best banks for savings account in India”. This is the most valued bank in India.
SBI has zero balance account facility.
| Daily balance | Rate of Interest |
| SB Deposit accounts with balances upto Rs. 1 lakh | 2.70% p.a. |
| SB Deposit accounts with balances above Rs. 1 lakh | i) 2.70% p.a. for balance upto Rs. 1 lakh ii) 2.70% p.a. for balance above Rs. 1 lakh |
Conclusion
These are the 5 best banks for savings account in India. If you only want to go with public sector bank, then go for SBI blindly, as that is the best. But if you have no problem going with private sector banks, then you need to decide whether you would prefer bank reputation or bank interest. If you want high interest, go with RBL or Kotak and if you want reputation, go with Axis or HDFC.
If you are not sure that you will be able to maintain the minimum balance of the account, then select from the banks that offers zero balance account facility.
I will suggest you to divide your money in multiple bank accounts and not just one. This way you are in lesser risk and also get opportunity to enjoy higher interest rate.
Do, let us know in the comment section below which bank account you are going with and comment down the other bank’s names which you feel must be present in the list.
FAQ on savings bank account
Which bank gives highest interest rate on saving account?
DCB Bank provides the highest interest rate of 5.65%
What is repo rate?
The interest rate that the RBI charges when commercial banks borrow money from it is called the repo rate.
What is reverse repo rate?
The interest rate that the RBI pays commercial banks when they park their excess cash with the reserve bank is called the reverse repo rate.
Which is the best public sector bank for savings account?
State Bank of India
Which is the largest private sector bank?
HDFC Bank
Which bank offers zero balance account?
All banks now offers a zero balance account which is called BSBDA account. But this account has limited facility and eligibility criteria.
An IT guy who keeps interest in blogging. Started blogging since 2017. He is the owner of the blog wheretosave.in and knowledgebear.com. A family man who loves Travelling, Gadgets and FOOD.
