Saving Account Interest Rates

Below is the table of bank savings account interest rate of various banks to help you compare savings account interest rates:

Key Highlights of Saving Account interest rates

• Saving account interest rate varies from 2.70% to 5.25% p.a. based on daily balance.
• Saving accounts help you fulfill your short-term financial goals.
• You can opt for hassle-free withdrawals.
• These accounts enable investment with minimum cash.
• You can use saving account interest rate calculator to calculate the interest amount instantly. 

Following are some attractive benefits of opening a savings account:

• You can be assured about the security of your money when you deposit it in a savings account. 
• You have 24X7 access to the money deposited in a savings account. The deposited money can be withdrawn from your bank or using the debit card without any hassles during any financial emergency without having to pay any penalty.
• You can start investing in a savings account with minimum cash. You just need to open a savings account with the minimum deposit amount required by the bank and start depositing funds whenever possible.
• You can use the savings bank interest calculator to know how much interest on savings account you can earn.
• A savings account also gives you access to internet banking and phone banking that enable quick and hassle-free transactions. 
• You can easily transfer funds instantly using NEFT/IMPS/RTGS, pay utility bills online, check account balance and transaction history, link credit card accounts to savings account, and do much more with the Internet Banking facility.
• Some banks also offer personal insurance benefits on opening a savings account.

The bank account interest amount accumulated on a savings account is considered as “Income from Other Sources” and must be filed for Income Tax Returns. However, TDS is not applicable on a savings account according to the Section 194 A of Income Tax Act. Saving deposit rate amount above Rs. 10,000 will be taxed on marginal tax rate of the account holder. Interest from a savings account is considered as a deduction and not an exemption. The deduction is permitted for interest income up to Rs. 10, 000 only and that is why, you must open a savings account in a recognized private bank, public bank or with the post office.

You can use a Savings Account Interest Calculator to check the interest you can get from your savings account. In this Calculator, you will have to enter some basic information such as average balance and saving deposit interest rate applied by the bank. Also, you will have to select if the sb account interest will be credited on a monthly, quarterly, half yearly or yearly basis to your account. The calculator will instantly provide the savings account return amount that you will get for the daily balance as well as the savings account interest rate.

Following are the top 5 banks that offer highest saving account interest rate in India: