INSUBCONTINENT EXCLUSIVE:
Savings bank account interest rates: Post offices also offer the facility of savings accounts.
Savings accounts help customers park their money safely with banks
Customers do earn an interest income on the account but generally savings bank accounts offer modest interest rates as compared to fixed
The interest earned is tax-free up to Rs 10,000 per year
Customers also get ATM and debit card facilities on savings bank accounts
Key banks like State Bank of India (SBI), ICICI Bank, and HDFC Bank offer the facility of opening savings bank accounts
Post offices across the country also offer the facility of opening savings accounts.Given below is a comparison of savings bank accounts
interest rates offered by SBI, ICICI Bank, HDFC Bank, and post officesState Bank of India (SBI) savings bank accountsSBI offers deposit
lockers, nomination facility, SMS alerts and e-statements to savings bank account holders, it said on sbi.co.in.Interest rates offered on
SBI savings bank accountsParticularsRate of InterestSaving Deposits Balance upto Rs
1 crore.3.50% p.aSaving Deposits Balance above Rs
1 crore.4.00% p.aICICI Bank savings bank accountsSavings bank account interest are calculated on the basis of end of day account balance
maintained in savings bank account, at the interest rate specified by ICICI Bank from time-to-time, stated the bank on its website,
icicibank.com.With effective from 19th August 2017, the savings account interest rate offered by ICICI Bank is:3.5 per cent for end of day
account balance of below Rs 50 lakh.4 per cent for end of day account balance of Rs 50 lakh and above.Interest is calculated on a daily
basis on the daily closing balance in the account, at the rate specified by ICICI Bank in accordance with Reserve Bank of India directives
The interest amount calculated is rounded off to the nearest rupee
With effect from March 30, 2016, interest is being paid quarterly in March, June, September and December, ICICI Bank said.HDFC Bank savings
bank accountsHDFC Bank pays interest on savings bank account balances on a quarterly basis
The interest is calculated on the daily balances maintained in the account, said the bank on its website, hdfcbank.com.Interest rates
offered by HDFC Bank on savings bank accountsSavings Bank balanceRevised Rate w.e.f 19th August, 2017Rs
50 lakh and above4%Below Rs 50 lakh3.50%Post Office savings accountsYou require a minimum of Rs 20 to open a savings account with India Post
A cheque facility is available if the account is opened with Rs 500 and for this purpose a minimum balance of Rs 500 in the account is to be
maintained, according to indiapost.gov.in.Interest rate offered on savings accounts by India Post is 4 per cent per annum on individual /
joint accounts.Savings accounts may not be the best option for investment purposes
Interest rates on public provident funds, fixed deposits, and national pension system are higher than savings bank accounts
Customers who do not mind taking a market-related risk may consider investing in liquid funds, shares and bonds.
