These banks are paying %% interest on savings accounts, a chance to make big money on savings!

Savings accounts are gaining more interest in these banks than many major banks.

Savings accounts are gaining more interest in these banks than many major banks.

At a recent monetary policy meeting, the RBI decided not to change policy interest rates. Savings account and FD holders have got some relief in such cases. Some banks are still paying better rates than major public and private sector banks.

  • News18
  • Last updated:
    December 1, 2020, 12: 2:23 pm IST

New Delhi. Interest rates on banks’ savings accounts and fixed deposits (FDs) depend on monetary policy such as the Reserve Bank (RBI) repo rate, base rate, financial position. In making these decisions, the Reserve Bank also takes into account the liquidity position and demand of the banks. At its December monetary policy meeting, the RBI decided to keep the policy interest rate at 4 percent. In such a case, the savings account and FD holders are relieved to some extent that the current interest rate will not fall. Many people have a savings account in a bank. In this case, there are some small and new private banks that pay more interest on savings accounts than other banks.

Good interest rates on small private banks

The data collected by the banking market shows that there are some new banks like Bandhan Bank and IDFC Bank, where the savings account is at interest rate of 15.15 per cent and interest rate respectively. These interest rates are a bit better than small finance banks. For example, AU Sana Finance Bank and Ujjivan Sana Finance Bank are earning %% and .5..5% interest on savings accounts respectively.

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In comparison, when it comes to major public and private sector banks, there are lower interest rates on savings accounts. Private sector HDFC Bank (HDFC Bank) and ICICI Bank (ICICI Bank) and and 3.5. Percentage interest is paid. The interest rate in the public sector State Bank of India (SBI) is 2.7070 per cent and in Bank of Baroda (BOB) it is 2.7575 per cent.

Obligation to maintain a minimum balance

Private banks require a minimum balance of Rs 50,000 to Rs 1,000 in a savings account. This is often higher than public sector banks. The minimum mandatory balance in IDFC Bank and Bonds is 10,000 and 5,000,000 respectively. In fact, the target customers of private banks are salaried middle class and self-employed people. Among Axis Bank and HDFC Bank’s major private banks, it is between 250,000 and 10,000, respectively.

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Generally human experts advise people to choose the same bank that has the best track record, best service, its branch network and ATM services should also be the best. If the bank is getting good interest rate then it is considered better.