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Which bank in India offers the highest rate of interest in a savings bank account?

Date: 29 Aug 2016    Group: Finance and Investments    Category: Banking   

There are many types of banks in India like PSU banks, cooperative bank, private bank and foreign banks. Which bank in India offers the highest rate of interest with respect to a savings bank account? Is the rate of interest offered by all the PSU banks equal?

Tell me about the list of banks which offer the highest rate of interest in a savings bank account.

Author: NK SHARMA    29 Aug 2016      Member Level: Gold     Points : 1  (Rs 1)    Voting Score: 0

Some of the banks offer 6% interest on saving bank account for example kotak mahindrs bank. Rate of interest offered by all the PSU banks is not equal. they offer different rate of interest and the margin is very less.

Author: Mahesh    30 Aug 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

As per the RBI guidelines no bank is allowed to give unrealistic interest rate. So almost every bank offers base 4% interest rate. And based on some conditions they may offer higher interest rate. For example, the Kotak Mahindra bank gives the 6% interest only on amount higher than 1 Lakh in the savings bank. Also that savings interest does invite the TDS too. So at the end you'd end up on the 3.5% yearly amount after the TDS deduction. Even the PSU banks offering similar scheme would be with same interest margin. Most of the banks however offer realistic 4% interest on amount upto 1 Lakh. And more than 4% on any amount higher than that. When it comes to TDS deduction and other fees, the PSU banks are better for savings rate because they have lesser infrastructure fees compared to the private banks such as ICICI, AXIS, and Kotak.

Author: Reena Upadhya    30 Aug 2016      Member Level: Silver     Points : 2  (Rs 2)    Voting Score: 0

- RBL bank offers 7.1% p.a. for daily balance of Rs:10 lakh and above.
-Public sector banks are giving 4% interest rate. This is because they have huge customers base and branches throughout the country and lots of trust is build up among people for PSU banks.
-Private banks at the same time are offering interest rate of 7-8% depending on the balance amount maintained to attract customers.
-Yes, all public sector banks offer almost same interest rate whereas private banks vary highly when comes to offering interests.

Author: Partha Kansabanik    06 Sep 2016      Member Level: Diamond     Points : 2  (Rs 2)    Voting Score: 0

Kotak Mahindra bank gives 6% interest p.a. only if the deposited amount is higher than INR 1 lakh in the saving account. The Public sector banks give 4% p.a. interest on the deposits in saving accounts.

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