Savings Account: Best Banks For Savings Accounts in India
A savings account is a flexible banking product that allows you to securely store and grow your money while earning interest.
A savings account is like your financial safety net, a place where you can securely stow away your hard-earned money. It's a fundamental tool for managing your finances and planning for the future. But why is it so important to have one? Well, think of it as your financial backup plan for those unexpected rainy days.
Life has a way of surprising us, and emergencies can pop up when we least expect them – be it a sudden medical expense, a car repair, or even a global crisis like the one we're experiencing now. Having money readily available in a savings account can make all the difference in such situations.
Imagine this: You're cruising along smoothly, enjoying life, when suddenly, your car breaks down. Without a savings account, you might find yourself scrambling to cover the repair costs, possibly resorting to loans or credit cards with high interest rates. But with a well-funded savings account, you can breathe easy.
It's your financial cushion, ensuring you have the means to deal with life's curveballs without falling into a financial pit.
Now, you might be wondering where to start with a savings account and how to choose the right one for your needs. Don't worry; we've got you covered!
In this blog, we'll walk you through all the essential details, from interest rates to minimum balance requirements, of the top banks' savings accounts in India. We've made sure that this information is presented in a way that's easy to understand and enjoyable to read.
So, whether you're just starting your financial journey or looking to optimize your savings, sit back, relax, and let us guide you through the world of savings accounts.
We believe that learning about your financial options should be a pleasant experience, and we're here to make it as straightforward as possible. Your money matters, and we're here to help you make the most of it while keeping your financial future secure.
In this blog post, we'll delve into the following topics:
- What is a Savings Account?
- Best Bank For Savings Account in India
- SBI (State Bank of India)
- HDFC (Housing Development Finance Corporation)
- Axis Bank
- ICICI Bank
- Advantages And Disadvantages Of Zero Balance Saving Account
Plus, so much more! Here, you'll find detailed explanations of the Best Bank For Savings Accounts in India and valuable guidance to assist you in making the optimal choice.
Let's dive in!
What is a Savings Account?
A savings account is a bank account that allows you to deposit money and earn interest. It is a safe place to keep your money and it can help you save for short-term goals, such as a down payment on a house or a new car. Savings accounts typically have lower interest rates than other types of investments, but they are also more liquid, meaning you can access your money easily.
Here are some of the features of a savings account:
1. Interest: You will earn interest on the money you deposit in your savings account. The interest rate is typically low, but it is still better than keeping your money in your locker.
2. Liquidity: You can access your money in a savings account easily. You can make withdrawals at any time, and you can also use your savings account to pay bills or make purchases.
3. Security: Your money in a savings account is insured by Deposit Insurance and Credit Guarantee Corporation (DICGC). The DICGC insures principal and interest up to a maximum amount of ₹5 lakhs. This means that your money is safe even if the bank fails.
4. Convenience: Most banks offer online banking and mobile banking services for savings accounts. This makes it easy to manage your account and make transactions.
Best Bank For Savings Account in India
The selection of the below mentioned best bank for savings account in India is based on a comprehensive evaluation of the services they offer, the ease and efficiency of their processes, and the high level of trust they enjoy among the public. This recognition is a testament to their dedication to excellence in the banking sector and their unwavering focus on meeting the diverse financial needs of their clients.
Here is a list of the top 4 banks to consider for your savings account:
- SBI (State Bank of India)
- HDFC (Housing Development Finance Corporation)
- Axis Bank
- ICICI Bank
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1. SBI Savings Account
State Bank of India (SBI) is the largest bank in India by assets and market capitalization. It is a multinational banking and financial services company headquartered in Mumbai, Maharashtra, India. SBI offers a wide range of banking products and services to its customers, including savings accounts, loans, investments, and insurance.
Here are some of the key features of an SBI savings account:
1. SBI saving account interest rate:
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Basic Savings Bank Deposit (BSBL): The interest rate remains fixed at 2.70% per annum, regardless of the balance maintained.
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Savings Plus Account: The interest rate is 2.70% per annum for balances up to Rs. 1 lakh and 3.50% per annum for balances exceeding Rs. 1 lakh.
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Teenager Savings Account: The interest rate is 3.50% per annum for balances up to Rs. 1 lakh, and it's 4.50% per annum for balances exceeding Rs. 1 lakh.
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Senior Citizen SBI Saving Account: The interest rate is 3.50% per annum for balances up to Rs. 5 lakh and 4.50% per annum for balances exceeding Rs. 5 lakh.
The latest update for the SBI saving account interest rate is as of September 2023.
SBI saving account interest rate is one of the best that you can get in comparison to other public Sector banks.
2. SBI saving account minimum balance requirement: SBI or State Bank of India, doesn't impose any minimum balance condition on savings accounts, and this rule applies across all types of savings accounts. SBI offers zero balance saving account to all its customers.
Previously, SBI had a minimum balance requirement of Rs. 3,000 for savings accounts in metros and Rs. 2,000 for savings accounts in non-metros. However, this requirement was waived in March 2020 as part of the bank's efforts to support customers by providing them with a zero balance saving account facility during the COVID-19 pandemic.
3. Online banking and mobile banking: You have the convenience of accessing your SBI savings account online or through mobile banking. This enables you to perform transactions, inquire about your balance, and review your statements whenever you wish.
4. ATM card: You'll receive an ATM card along with your SBI savings account, granting you the ability to withdraw cash from ATMs all over India.
5. Chequebook: You can also obtain a checkbook with your SBI savings account, enabling you to make payments via checks.
6. Auto sweep facility: You can establish an auto-sweep facility with your SBI savings account, which will automatically transfer any excess funds from your savings account to your fixed deposit account.
2. HDFC Savings Account
HDFC Bank is India's largest private sector bank by market capitalization. It offers a wide range of banking products and services, including savings accounts, loans, credit cards, and investment products. HDFC Bank has a network of over 5,000 branches and 16,000 ATMs across India.
Here are some of the key features of an HDFC savings account:
1. HDFC saving account interest rate:
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HDFC Bank Savings Account: For balances up to Rs. 50 lakh, the interest rate is 3.00% p.a. and for balances exceeding Rs. 50 lakh, it's 3.50% p.a.
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Senior Citizen HDFC Bank Savings Account: The interest rate is 3.50% p.a. for balances up to Rs. 50 lakh and 4.50% p.a. for balances exceeding Rs. 50 lakh.
The latest update for HDFC saving account interest rate is as of September 2023.
2. HDFC Saving account minimum balance requirement:
- HDFC Bank Savings Account:
-> For urban branches, the minimum average monthly balance (MAB) requirement is Rs. 10,000.
-> For semi-urban branches, the MAB requirement is Rs. 5,000.
-> For rural branches, the MAB requirement is Rs. 2,500.
- Senior Citizen HDFC Bank Savings Account:
->There is no minimum balance requirement for senior citizen HDFC Bank savings account.
HDFC saving account interest rate will make your money grow over time, even with inflation.
3. Online banking and mobile banking: You have the convenience of managing your HDFC savings account online or via mobile banking, enabling you to conduct transactions, review your balance, and access your statements whenever needed.
4. ATM card: Upon opening an HDFC savings account, you'll receive an ATM card, granting you the capability to withdraw cash from ATMs across India.
5. Premium Banking Services: By keeping a minimum balance of Rs. 25 lakh in your HDFC savings account, you can unlock premium banking services, including priority banking, a dedicated relationship manager, and complimentary insurance coverage.
6. Nomination facility: You have the option to appoint a beneficiary who will receive your HDFC savings account in the event of your demise.
3. Axis Bank Savings Account
Axis Bank is the third-largest private sector bank in India, offering a wide range of banking products and services, including savings accounts, loans, credit cards, and investment products. Axis Bank has a network of over 4,500 branches and 13,000 ATMs across India.
Here are some of the key features of the Axis Bank savings account:
1. Axis Bank Savings account Interest rate:
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Axis Bank Savings Account: The interest rate is 3.00% per annum for balances up to Rs. 50 Lacs and 3.50% per annum for balances exceeding Rs. 50 Lacs.
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Senior Citizen Axis Bank Savings Account: The interest rate is 3.50% per annum for balances up to Rs. 50 Lacs and 4.50% per annum for balances exceeding Rs. 50 Lacs.
The latest update for Axis Bank's savings account interest rate is as of September 2023.
2. Axis Bank Minimum balance for savings account:
- Easy Access Axis Bank Savings Account:
-> For metro and urban locations, the minimum average monthly balance (MAB) requirement is Rs. 12,000.
-> For semi-urban locations, the MAB requirement is Rs. 5,000.
-> For rural branches, the MAB requirement is Rs. 2,500.
- Basic Axis Bank Savings Account
->There is no minimum balance requirement for a basic Axis Bank savings account.
3. Free ATM withdrawals: You can make free ATM withdrawals at all Axis Bank ATMs and at specific ATMs of other banks as well.
4. Free RuPay Debit Card: You will receive a complimentary RuPay Debit Card with your Axis savings account. This card enables you to withdraw cash from ATMs and make purchases at various merchant outlets.
5. Priority banking for select customers: Maintaining a minimum balance of Rs. 25 lakh in your Axis savings account makes you eligible for priority banking services, including a dedicated relationship manager and complimentary insurance coverage.
6. Lost instrument replacement facility: In case your ATM card or chequebook is lost, you can request a replacement from Axis Bank.
4. ICICI Bank Savings Account
ICICI Bank is one of the largest private sector banks in India. It was established in 1994 and is headquartered in Mumbai. ICICI Bank offers a wide range of banking products and services, including savings accounts, loans, credit cards, and investment products. ICICI Bank also has a presence in many countries.
Here are some of the key features of the ICICI Bank savings account:
1. ICICI Savings account interest rate:
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ICICI Bank Savings Account: Interest rates are set at 3.00% per annum for balances up to Rs. 50 lakh and 3.50% per annum for balances exceeding Rs. 50 lakh.
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Senior Citizen ICICI Bank Savings Account: Interest rates are 3.50% per annum for balances up to Rs. 50 lakh and 4.50% per annum for balances exceeding Rs. 50 lakh.
A high ICICI Bank savings account interest rate will not only grow your money but also give you a financial cushion.
The latest update for ICICI bank savings account interest rate is as of September 2023.
2. Minimum balance requirement:
- Regular Savings Account:
-> The minimum average monthly balance (MAB) needed for metro and urban areas is Rs. 10,000.
-> For semi-urban areas, a monthly average balance of Rs. 5,000 is required.
-> In rural branches, you need to maintain a monthly average balance (MAB) of Rs. 2,500.
- Salaried Account:
->Salaried accounts do not have a minimum balance requirement.
- Senior Citizen ICICI Bank Savings Account:
->There is no minimum balance requirement for senior citizen savings accounts.
3. Free SMS alerts: You'll get complimentary SMS notifications for all your transactions, including balance inquiries, ATM withdrawals, and online payments.
4. Free chequebook: A complimentary chequebook will be provided with your ICICI savings account.
5. Free NEFT/RTGS: You have the option to conduct NEFT/RTGS transactions for free using your ICICI savings account.
6. Nomination facility: You can designate a person to receive your ICICI savings account in the event of your demise.
To access this process, simply use the GroMo app. It provides easy access to banks like HDFC, ICICI, KOTAK, and others. This app facilitates a seamless way to sell and earn.
Advantages And Disadvantages Of Zero Balance Saving Account
Here are some of the advantages and disadvantages of a zero balance saving account:
Advantages of zero balance saving account:
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No minimum balance requirement: As the name suggests, you don't need to maintain any minimum balance in a zero balance saving account. This can be a relief for those who cannot afford to maintain a high minimum balance.
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No penalty for not maintaining balance: Most savings accounts charge a penalty if you fail to maintain the minimum balance. With a zero balance saving account, you won't have to worry about such penalties.
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Interest on deposits: Although the Savings account interest rate on zero balance saving accounts is usually lower than regular savings accounts, you still earn interest on your deposits. This is a good way to earn a little extra money on your savings.
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Access to banking services: With a zero balance saving account, you can enjoy all the benefits of a regular savings account such as ATM access, debit card, online banking, etc.
Disadvantages of zero balance saving account:
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Lower interest rate: As mentioned earlier, the savings account interest rate on zero balance saving accounts is usually lower than regular savings accounts.
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Limited banking services: While you can access basic banking services with a zero balance saving account, some banks may restrict certain services such as chequebook issuance or demand draft issuance.
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Fees and charges: Some banks may charge fees for certain services or transactions even on zero balance saving accounts. It's important to read the terms and conditions carefully to avoid any surprises.
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Key Takeaways
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Savings Account: A savings account is a secure place to deposit money and earn interest. It's ideal for short-term goals and provides easy access to your funds.
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SBI Savings Account: It offers competitive interest rates ranging from 2.70% to 3.50% p.a. with no minimum balance requirement. They provide various facilities including online banking, ATM, and chequebook access.
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HDFC Savings Account: It offers competitive interest rates ranging from 3.00% to 4.50% p.a. with no minimum balance requirement. They provide various facilities including priority banking, a dedicated relationship manager, complimentary insurance coverage, and much more.
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Axis Bank Savings Account: It offers competitive interest rates ranging from 3.00% to 4.50% p.a. with no minimum balance requirement. They provide various facilities including a Free RuPay Debit Card, Priority banking for select customers, and much more.
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ICICI Bank Savings Account: It offers competitive interest rates ranging from 3.00% to 4.50% p.a. with no minimum balance requirement. They provide various facilities including Free SMS alerts, Free chequebook, Free NEFT/RTGS, and much more.
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Zero Balance Saving Account: It refers to a savings account without any minimum deposit requirement.