Large private sector banks, like ICICI Bank, offer a 3-3.5% interest rate. Public sector banks, too, offer similar rates. Some, like the State Bank of India, offer even lower rates of 2.7%
IDFC First Bank was the only bank that used to offer 6% interest rates to small depositors -– those maintaining a balance of below ₹1 lakh. The bank would offered it to all depositors maintaining a balance of up to ₹1 crore. But from 1 May, the bank has lowered its interest rates on the savings account.
Taking a cue from its peer, the bank now has different tiers. It will offer 4% for those who maintain balances below ₹1 lakh. Those maintaining a balance between ₹1 lakh and less than ₹10 lakh, the interest rate will be 4.5%. The highest interest rate of 5% is given to those who maintain a balance between ₹10 lakh and below ₹2 crore.