Best Banks for Savings Account in India

A savings bank account is a basic type of bank account where you can make deposits and withdraw money according to your needs. You can use it to receive salaries and make UPI payments, as well as withdraw cash using the ATM or Debit card given to you.

Read ahead to learn about the best banks for savings accounts in India based on interest rates and minimum balances.

Top Savings Bank Accounts of 2024

Banks give attractive interest rates even on savings bank accounts. Here are the top 11 banks in India in 2023, the interest rates they offer as well as the minimum balance you need to hold a savings bank account in these banks - 

Bank

Interest Rate of Savings Bank Account

Minimum Balance

State Bank of India

2.70% - 3.00%

Nil

Union Bank of India

2.75% - 3.55%

Nil

HDFC Bank

3.00% - 3.50%

Rs.2,500, Rs.5,000, or Rs.10,000, depending on the location

ICICI Bank

3.00%

Rs.1,000, Rs.2,000, Rs.5,000, or Rs.10,000, depending on the location

Axis Bank

3.00% - 3.50%

Rs.2,500, Rs.5,000, or Rs.12,000, depending on the location

Bank of Baroda

2.75% - 3.35%

Rs.500, Rs.1,000, Rs.2,000, depending on the location

IDFC First Bank

3.50% - 4.00%

Rs.25,000

Bank of India

2.75% - 2.90%

Rs.500 onwards, depending on the type of account

Kotak Mahindra

3.50% - 4.00%

Rs.10,000

RBL Bank

4.25% - 6.75%

Nil, Rs.1,000, Rs.10,000, or Rs.25,000, depending on the type of account 

IndusInd Bank

3.50% - 6.00%

Nil to Rs.20,000, depending on the type of account

Which Bank is Best for Savings Account in India

The answer to the question of which bank is best for savings account in India depends on a lot of factors. Each bank also offers various kinds of bank accounts which may have different minimum balance requirements and different limits to withdrawals. 

Here are some of the factors discussed that you must consider before choosing the best bank for you - 

All banks offer interest on the money stored in savings bank accounts. Of course, the rate of interest is higher for Fixed Deposits and Recurring Deposits, but you can also look at which bank offers the highest rate of interest on savings accounts.

The interest rate will depend on the amount of money that is parked in your account. In most cases, you will receive a higher rate of interest if you keep higher sums of money in your account.

You can check this information by visiting a bank’s website and searching for ‘Interest Rates’.

Banks have various kinds of savings bank accounts that they offer, including special accounts for pensioners, students, and women. The minimum balance may be nil if you have opened a zero balance account, while it may go up to Rs.25,000. 

You can choose a bank that has an affordable minimum balance, as you would need to deposit that amount while opening the bank account. 

When you open a bank account, considering both online and offline accessibility is important. Given your busy lifestyle, you will mostly be conducting your banking transactions online. Thus, whether the bank has a functional app and website, as well as how secure and easy to use they are should be considered before opening an account. 

Apart from this, it is inevitable that you might have to visit the bank branch for something or the other. Thus, checking if the bank has a branch close to where you stay is important. 

The fees and charges include charges for failing to maintain the minimum balance, yearly charges for sending SMS notifications, ATM charges, etc. All banks charge some fee for maintaining your account. Don’t forget to check how high they are before you choose a bank to open an account.

Banks have certain rules regarding the highest amount that can be withdrawn from your account. 

Pay close attention to your lifestyle and requirements, as that will determine how much you will need to withdraw on a daily basis. That, in turn, might determine which bank will be the best choice for you. 

Conclusion

There is no definite answer to the question ‘which bank is best for savings account in India’ as it depends on your specific needs. You can compare various aspects of the top banks and choose one that is best for you.

Having a bank account also helps you to get loans when you are in need of urgent money. It becomes easier to submit proof of income when your income gets deposited directly in your account. 

Best Banks for Savings Accounts in India - Related FAQs

Which bank has the best savings account depends on what factors you choose to compare them on. If you are looking for a zero-balance account, you can choose SBI, UBI, RBL, or IndusInd Bank. But if are looking for good interest rates, then RBL Bank would be the best choice for you.

Yes, SBI has the option of opening a zero-balance savings bank account.

Consider factors like accessibility, distance to the nearest bank branch, facilities provided, minimum balance required, interest rates offered, etc. to choose which bank account will be best for you.

Both are top banks that offer an array of services to their customers. Their online banking facilities are also top-notch. Thus, you should go through the fees and charges, and the minimum balance that needs to be maintained before you decide which will be better for you.

Yes, you can easily have two accounts in one bank.


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