After the fall in the fixed deposit rate, people have started keeping their money in the savings account. Because here the interest is higher than the FD rates.
There are many benefits of having a savings account like getting cash, interest, safety of money, extra earning due to auto sweep facility between savings account and fixed deposits etc. You can open savings account in private as well as public sector banks. Small private banks offer higher interest rates on savings accounts than major private banks like HDFC Bank and ICICI Bank to attract new retail customers.
These five private banks are paying the highest interest on savings accounts
DCB Bank is offering an interest rate of up to 6.5 percent on savings accounts. This bank is paying the highest interest among private banks. The minimum balance requirement is Rs 2,500 to Rs 5,000.
Bandhan Bank is offering an interest rate of up to 6 percent on savings accounts. The monthly average balance requirement in this bank is Rs 5,000.
RBL Bank is offering interest rates up to 6 percent on savings accounts. Average monthly balance requirement is Rs 2,500 to Rs 5,000.
Yes Bank is offering an interest rate of up to 5.25 percent on savings accounts. Average monthly balance is Rs 10,000 to Rs 25,000.
IDFC First Bank and IndusInd Bank offer interest rates up to 5 percent on savings account. The average monthly balance in IDFC First Bank is Rs 10,000. Similarly, the monthly average balance in IndusInd Bank is Rs 1,500 to Rs 10,000.