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Savings accounts are one the good options for earning modest returns. But it's not all that makes savings account a suitable choice for those who have some extra money. Apart from giving modest interest rates, savings accounts are also reliable, safe, secure, and fulfil short-term needs. This investment platform is an ideal choice for those who have regular income such as salaried employees.
Savings accounts are a solution to short financial goals such as wedding planning, buying a vehicle, buying jewellery, or future vacations among others. One of the best features of these accounts is that the minimum balance requirement is low and the rate of interest is fixed. Currently, the bank offers interest rates from 3.5-6% on the savings account.
The new financial year 2022-23 has arrived and there are two banks that have revised their savings account interest rate from April 1 onward. These two banks are RBL Bank and IDFC First Bank.
However, one needs to note, that interest rates are subject to periodic changes in the banking sector.
IDFC First Bank:
From today onward, the Bank offers a 4% rate on deposits up to ₹1 lakh on the savings account. The rate is higher to 4.5% on savings between ₹lakh to less than or equal to ₹10 lakh, and 5% is offered on savings between ₹10 lakh to less than or equal to ₹25 lakh. 4.5% is also offered on savings above ₹100 crore to less than or equal to ₹200 crore, while 5% is also given on above ₹1 crore to less than or equal to ₹100 crore.
The highest interest rate offered on savings accounts here is 6% on deposits above ₹25 lakh to less than or equal to ₹1 crore, while the lowest rate is 3.5% and is offered on savings above ₹200 crore.
Here's how your savings account interest rates are calculated:
The bank explains that interest will be calculated on progressive balances in each Interest Rate Slab, as applicable.
IDFC First Bank explains the following with examples:
1. In case your account balance with IDFC First is ₹25,000, the interest payable to you will be 4% on the entire ₹25,000.
2. In case your account balance with the bank is ₹5 lakh, the interest payable to you will be 4% on ₹1 lakh and 4.5% on ₹4 lakh.
3. In case your account balance with the bank is ₹1.10 crore, the interest payable to you will be 4% on ₹1 lakh, 4.5% on ₹9 lakh, 5% on ₹15 lakh, 6% on ₹75 lakh and 5% on ₹10 lakh.
4. In case your account balance with us is ₹5.3 crore, the interest payable to you will be 4% on ₹1 lakh, 4.5% on ₹9 lakh, 5% on ₹15 lakh, 6% on ₹75 lakh, and 5% on ₹4.3 crore.
RBL Bank:
RBL Bank has trimmed its savings account interest rate by 25 basis points to 1% on various savings balances.
From April 1, the Bank offers a 4.25% rate on savings up to ₹1 lakh, and 5.5% on above ₹1 lakh to ₹10 lakh. These rates were unchanged. However, the bank offers a 6% rate each on savings above ₹10 lakh to ₹3 crore and above ₹3 crore to ₹5 crore compared to the previous 6.25% each.
A 5.75% rate is offered on savings above ₹5 crore to ₹10 crore against the previous 6%, while a similar 5.75% rate was kept unchanged on savings above ₹10 crore to ₹50 crore. Rates were also kept unchanged at 5.25%, 5%, and 4% on savings above ₹50 crore to ₹100 crore; above ₹100 crore to ₹250 crore; and above ₹300 crore.
The highest cut of 1% was made in savings above ₹250 crore to ₹300 crore, where the interest rate now stands at 4% from the previous 5%.
