Are you looking for ways to maximize your savings and grow your money deposited in your savings bank account with savings accounts with high interest rates ? Investing in stocks and mutual funds could be the way however high interest bank accounts may be the alternative. You can maximize your savings with high interest bank accounts wherein interest rates are significantly higher than the traditional savings accounts.
Are you among those who wish to open high yield savings account then you must keep reading this article. This articles mainly focus on the bank giving highest interest rate on savings account .
In this article, We’ll focus on a list of the top 10 high interest bank accounts in India. But before that we will know what high interest bank accounts are and what factors you should keep in mind when choosing one.
Every Bank offers savings account but we don’t open our savings account with every bank. People don’t keep more number of savings accounts just to avoid burden at income tax filing. But we must keep our eyes on higher interest rate banks while opening a savings account.
What is savings account?
Savings account is a such a bank account in which banks are paying interest on the amount held with Bank on daily basis but the savings interest is credited either quarterly or monthly. Savings accounts with high interest rate are better than keeping funds idle at home.
Technically, Savings account consists of three columns where in Banks captures DEBIT, CREDIT and BALANCE transactions.
- 💳DEBIT indicates the transactions like cash withdrawn from ATM, Cash Counter or online payment
- 💳CREDIT shows the transaction of cash deposit, payment received online in the form of NEFT or RTGS, IMPS, UPI
- ✨BALANCE refers the reaming balance in your savings account.
What are High Interest Savings Bank Accounts?
Savings Accounts that offer higher interest rates on savings deposits are basically called the high interest savings accounts or Best Savings Accounts with high interest Rates. These accounts come up with certain account specific requirements like minimum balance and limited cash or other withdrawal as they can offer much higher returns on your savings deposits.
Factors to consider before choosing one.
You should consider several factors while choosing a higher interest rate savings account. Interest is the most important factor that plays a vital role. You should also consider the charges levied on minimum balance requirements, ATM Transactions, accessibility and convenience. Bank reputation and security of money are also considered game changing factors while opening Best Savings Accounts with high interest Rates.
Now, let’s take a glimpse at the top Best Savings Accounts with high interest Rates and high interest rate bank accounts in India considering the factors like interest rate, fees and charges, and other essential factors.
Best Savings Accounts with high interest Rates
1. HDFC BANK
HDFC Bank is one of the largest private sector banks in India offering a wide range of financial products and services since decade. The interest rate on their savings accounts varies depending on the balance in the savings account. It offers savings accounts based on one’s requirements. List of savings accounts in HDFC Bank
- Regular Savings Account
- SavingsMax Account
- Women’s Savings Account
- Digi Youth Account
- Senior Citizen Account
- Savings Farmer Account
- Super Kids Account
HDFC offers 3.00 % ( Less than Rs 50.00 Lacs)interest rate for savings Bank deposits and 3.50% for more than 50.00 lacs.
2. Kotak Mahindra Bank
Kotak Mahindra Bank is another popular bank in India that also offers various banking and financial products. Just like any Bank, Kotak Mahindra Bank also has different kinds of savings account products to cater the need of the hour.
Kotak Mahindra Bank offers a 3.50 % rate of interest on savings deposit balances up to 50.00 lacs and 4% on more than 50.00 lacs for domestic savings accounts. It offers 3.50 % on NRE/ NRO accounts.
Kotak Mahindra Bank , a new generation private bank having branches almost in every corner of India, is offering savings account from a small kid to old senior citizen. It too offers variety of high interest rate savings accounts on customization based. Many corporates have tied up with Kotak Mahindra Bank for salary savings account for their employees. It offers Digital Savings Account with its 811 Mobile App.
3.Yes Bank
Yes Bank is a newer private sector bank in India which was about to get liquidated but saved by the efforts of corporates and Government agencies. It also offers savings accounts products with attractive interest rates.
One of the savings accounts called Savings Value savings account will help you earn 6.25 % interest rate on your savings deposit.
4. IDFC First Bank
IDFC First Bank is relatively a new small finance Bank in India. It offers very attractive financial products and services with best customer service. In fact, IDFC is the first bank which has started giving monthly interest credit on the savings deposits across the Banking Industry.
IDFC First Bank’s digital savings account will earn up to 6.75% p.a interest on savings deposits. This Digital Savings Account is a paperless digital account opening with VKYC( Video KYC) gives monthly interest credit and secures your savings deposits with Rs 35.00 lacs personal accident cover and 1 cr of rupees air accident insurance cover.
It offers 6.00 lacs Purchase limit and 2.00 lacs daily ATM cash withdrawal limit which makes its savings account different from other banks in India.
IDFC First Bank is one of the banks offering a highest interest rate savings account with plenty of Banking services. The best part of IDFC First savings account is monthly interest credit. There are mainly two savings accounts offers monthly credit of interest on savings account. The bank offers highest interest rate savings account with additional features that beyond many public sector banks.
| Feature | Savings Account with MAB ₹25,000/- | Savings Account with MAB ₹10,000/- |
|---|---|---|
| Personal Accident Cover | ₹35.00 lacs coverage | ₹2 lacs coverage |
| MAB | ₹25,000/- | ₹10,000/- |
| Daily Cash Withdrawal limit | ₹2 lacs/ Day Domestic ATM | ₹1 lac/ Day Domestic ATM |
| Air Accident Cover | ₹1 Crore | Not available |
| Lost Card Liability | ₹6 lac | ₹1.5 lakh |
| Daily Purchase Limit | ₹6 lakh | ₹1.5 lakh |
| Purchase Protection Limit | ₹ 1 lakh | Not Available |
| Airport Lounge Access | Twice in a quarter | Not Available |
5. Axis Bank
Axis Bank is one of the largest private sector banks in India and it has started offering various financial products and services ever since. The interest rate on savings accounts varies depending on the kind of savings account you are holding with Bank. The Bank offers interest rate as per below table.
| Balance Slabs | Rate of Interest on Savings Deposit |
|---|---|
| Less than Rs 50.00 Lacs | 3 % |
| Rs 50 Lacs and up to less than Rs 800 Cr | 3.50 % |
| Rs 800 Crs and above | Overnight MIBOR + 0.70 % |
How to open highest interest rate savings account
Opening a interest savings account with a bank giving highest interest rate on saving account is quite simpler. However, you need to provide your KYC to open Best Savings Accounts with high interest Rates.
One can use (1) Identity Proof (2) Address Proof ( 3) Recent Passport size Photo to support your KYC. I insist that you must submit your PANCARD as your Identity Card because Bank will not allow transaction exceeding Rs 50,000/- in case of non submission of PANCARD.
At present online banks savings accounts trends have drastically increased. But online banks savings account comes with limited services until it gets full-fledged KYC compliance.
Conclusion
Your main objective might not be the highest interest rate savings account even though I recommend here that you should consider Best Savings Accounts with high interest Rates. In addition to that, we must take into account few more things like distance from home to bank, banking services rates and customer service. However, if you are tech savvy, these things won’t matter at all. You can online savings account instantly at your own convenient.