© PTI IDBI Bank and Canara Bank offer the best rates on savings accounts among public sector banks
Most salaried individuals manage multiple savings accounts. One savings account is linked to salary deposits and investments, while another is used to pay loan instalments, credit card dues, manage monthly expenses, etc. You can also use the savings account for parking your emergency funds.
As per data compiled by BankBazaar, public sector banks such as IDBI Bank and Canara Bank offer interest rates up to 3.5 per cent and 3.2 per cent respectively on savings accounts. IDBI Bank Saving Account interest rate. Savings Bank Rate Saving Balance of: Less. The interest rate is decided solely by the bank and changes from time to time. Regular interest depends upon the balance of the savings account. Interest rate in savings account ranges from 3.5% to 7%. IDBI Bank offers you a range of savings account for optimal management of your money. With Account, you not only save your money but also make it grow. Account Advantage. Faster transfer of funds; Online options to pay your bills or tax; Good options to grow money at attractive interest rates Instant Banking; International Debit Card.
Savings bank accounts generally carry lower interest rates compared to those on fixed deposits.
Public sector banks offer much lower interest rates on savings accounts than what many new private and small finance banks do. It’s important to give some serious thought on how much interest is paid by banks for leaving your funds in the savings account.
Idbi Saving Account Interest Rate 2019
Interest rates are comparable to those of leading private banks
As per data compiled by BankBazaar, public sector banks such as IDBI Bank and Canara Bank offer interest rates of up to 3.5 percent and 3.2 percent, respectively on their savings accounts. These interest rates are competitive when compared with what leading private banks offer. For instance, HDFC Bank and ICICI Bank offer 3-3.5 percent interest.
However, large public sector banks give far lower interest rates to their savings account holders. For instance, State Bank of India (SBI) and Bank of Baroda (BOB) pay just 2.70 percent and 2.75 percent, respectively.
The interest rates offered by small finance banks to their savings account holders are higher compared to those on public sector banks. For instance, AU Small Finance Bank and Ujjivan Small Finance Bank offer interest rates of up to 7 percent and 6.5 percent, respectively.
Minimum balance requirements are lower
The minimum balance requirement in savings accounts of public sector banks starts from Rs 250 and at State Bank of India, it’s nil. This is kept much lower compared to the requirements of leading private banks in India because public sector banks are backed by the Government of India and they are more interested in reaching out to lower and middle-income group customers with their services. For Axis Bank and HDFC Bank, the minimum balance requirement is Rs 2,500 to Rs 10,000. In the case of ICICI Bank, the minimum balance requirement is Rs 1,000 to Rs 10,000.
Choose a bank with a long-term track record, good service standards, wide branch network and ATM services across cities; a higher interest on savings accounts would be a bonus.
Also read: Keep your bank account adequately funded to avoid penalties
A note about the table
Interest rates on savings accounts for all BSE-listed public sector and private banks are considered for data compilation. Banks whose websites don't advertise the data are not considered. Minimum balance requirement for regular savings accounts and excluding basic savings bank deposit (BSBD) account are considered.
A Savings Account is very beneficial with multiple advantages as detailed below:
(1) Earns Interest on your Savings
This is the first and foremost benefit of opening a savings account. It starts earning interest on your money as soon as it is deposited. The interest rate is decided solely by the bank and changes from time to time. Regular interest depends upon the balance of the savings account.
Interest rate in savings account ranges from 3.5% to 7%.
(2) Provides Security of Funds
There is no risk involved in your savings account. It is considered as one of the safest investment alternatives. It even offers you the opportunity to put your money into another investment whenever the time comes.
(3) No Lock-in Period
There is no lock-in period under savings account which means that you can withdraw your deposits anytime you need. There is no need to keep your money in this account for any specific period. You have full flexibility in withdrawal of amount from it.
(4) Offers Liquidity
You can withdraw the amount anytime 24X7 with the use of ATM card or debit card from your account during any emergency even when the bank is closed. In fact, being able to access your money when you need it, is one of the biggest benefit of having a savings account.
(5) Availability of Variety of Savings Account
Many banks offer comprehensive range of savings accounts from regular to premium suiting to your personal banking needs. There are different types of savings accounts offered by various banks that differ based on the interest rates and duration of time commitments. You can choose any of them which suits your financial objectives and requirements.
(6) Services of Customer Relation Manager
Now-a-days many of the banks engage a Customer Relation Manager (CRM) who will help not only solve your queries but also assist you in tax saving, investment, mutual fund schemes, insurance, bank procedures, etc. You need to just call your CRM and he/ she will assist you solve your problem.
(7) Online Banking Facilities
If you maintain a savings account, you can make many transactions online also such as payment of bills, fund transfers using RTGS/ NEFT or IMPS, etc. This will save your time and efforts.
(8) Provides ATM/ Debit Card
You will be offered a debit or ATM card with a nominal charge or without any charges, as offered by your bank. With the help of this card, you can withdraw the funds, make transactions in shops, make payments of bills, etc.
Idbi Nre Saving Account Interest Rate
(9) Helps you Get Credit or Loan
The relation you maintain with the bank will help you in getting credits from the bank such as home loan, personal loan. You will also be in a position to negotiate with the banker on the interest rates.
(10) No Cap on Deposits
There is no limit on the amount deposited and number of times it is deposited.
(11) Facility to link Loan EMIs, Mutual Fund SIPs or RD deductions
You get a facility to link your monthly loan EMIs, Mutual Fund SIPs or RD deductions through the savings bank account.
(12) Free Mobile App
Most of the banks provide their mobile app for free. Play free slots for fun as guest. Through this app, you can get to know your account balance, check your statement, make transactions, easy transfer of money, etc.