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Savings Account Interest Rates

Interest rate on a Savings Account is calculated on a daily basis and is credited to the account on the first day of the next quarter. The rate of interest will depend on the balance maintained in the account. It currently ranges between 3% and 3.5%.

A Savings Account is used for many different purposes ranging from parking money for future investments, keeping funds safe, easy liquidity, carrying out payments and other transactions. Additionally, balance in a Savings Account also earns interest, thus improving an individual’s income. Interest earned up to Rs. 10,000 on Savings Account in a financial year, is tax-free.

Effective 1st Jun, 2022, the interest on your Savings Account has been revised as per the following interest rate structure.


Balance SlabsApplicable Rate of Interest w.e.f. 1st Jun, 2022
Less than Rs. 50 Lacs 3.00% p.a.
Rs. 50 Lacs and up to less than Rs. 800 Crs3.50% p.a.

The interest is calculated basis incremental balance slabs upto Rs. 800 Crs. For rates on amount of Rs. 800 Crs and above, please contact the branch official.



FAQs

  • How is the interest rate on Savings Account calculated?
    The interest rate is calculated on the balance maintained in the Savings Account on a daily basis, but it is credited to the account on a quarterly basis (on the first day of the next quarter with the exception of the fourth quarter where the interest amount is paid on the last day of the quarter).
    Is there a time limit for a Savings Account?
    There is no time limit or maturity period for a Savings Account. You will earn interest as long as you maintain funds in the account. Please remember however that some Savings Account may require you to maintain a minimum balance. This requirement may differ basis the type of Savings Account you hold and also on whether your Bank branch is in an urban, rural or semi-urban location.
    What are the benefits of a Savings Account?
    Benefits and advantages of a Savings Account include:
    • A safe and liquid avenue to park your funds
    • A source of regular interest, even as you access the money for your transactions
    • Access to a Debit Card linked to your Savings Account helping you make cashless transactions which is safer and more secure than handling cash
    • Online fund transfer options such as UPI, IMPs, NEFT or RTGS to seamlessly transfer money from your Savings Account for payments and other needs
    • Used for starting investments like a Recurring Deposit, a Systematic Investment Plan (SIP) in a mutual funds. Additionally, if you want to invest in securities, you can also open a trading and Demat account, if you have a Savings Account
    • You can also enjoy special value added services and benefits such as cashbacks and discounts on merchant purchases which will help you to save more

    Please note, this is only an indicative list. Depending upon the variant of Savings Account opened, you may be entitled to avail even more features.