Yesterday, the Reserve Bank of India (RBI) announced a 50 basis point (bps) hike in the repo rate from 4.4 per cent to 4.90 per cent, which turns into a rise in lending and deposit rates that people may see in the near future. Some banks have already begun to raise interest rates on FDs and savings accounts, but investors will have to wait a little longer until interest rates rise again. Customers planning to establish a savings account in the face of rising interest rates can choose the four public-sector banks giving the highest interest rates on savings bank deposits.
Union Bank of India
Union Bank of India has the highest savings account interest rate in the public sector, at 3.55 per cent. With effect from 01.06.2022, the bank offers an interest rate of 2.75 per cent on savings account balances of up to Rs.50 lakhs, 2.90 per cent on savings account balances of more than Rs.50 lakhs to Rs.100 Crores, 3.10 per cent on savings bank deposits of more than Rs.100 Crores to Rs.500 Crores, 3.40 per cent on savings bank deposits of more than Rs.500 Crores to Rs.1000 Crores, and 3.55 per cent on balances of above ₹1000 Cr.
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Canara Bank
As per our analysis, Canara Bank is the second public sector bank on our list with the highest interest rates on savings accounts. The bank is offering an interest rate of 2.90% for an outstanding balance of less than Rs. 50 Lakh to less than ₹100 Cr, 3.05% for the balance slab of Rs. 100 Cr to less than ₹500 Cr, 3.35% for the balance slab of ₹500 Cr to less than ₹1000 Cr and 3.50% which is the highest rate for the balance slab of ₹1000 Cr & above. These rates are effective as of 01.03.2022.
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Bank of Baroda
Bank of Baroda is the third bank on our list based on higher interest rates on savings accounts. The bank offers a 2.75 per cent interest rate on balance slab of Rs. 1.00 lakh to less than ₹100 Crores, 2.85 per cent interest rate on balance slab of Rs.100 Crore and above to less than Rs.200 Crores, 3.05 per cent interest rate on balance slab of ₹200 crores and above to less than ₹500 crores, 3.25 per cent interest rate on balance slab of ₹500 crores and above to less than ₹1,000 crores, and 3.30 per cent interest rate on outstanding balance slab of ₹1,000 crores.
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Punjab & Sind Bank
This public sector bank is the 4th bank on our list based on higher interest rates on savings accounts. The bank gives 3.00 per cent p.a. on savings bank deposits of less than ₹10 crore and 3.20 per cent on savings bank deposits of more than ₹10 crore. These rates are in effect as of February 1, 2022.
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Vipul Das
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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The State Bank of India (SBI), founded in 1806 as the Bank of Calcuta is one of the best savings account India. It is India's oldest and largest government-owned bank.
This account is only available to first direct 1st Account customers. Find out more about our 1st Account. Our Regular Saver gives you a 7.00% AER/Gross p.a.
Traditional savings accounts typically have relatively low interest rates, which means your money won't have a very high rate of return. But, many banks, such as Valley Direct and Western Alliance Bank, offer high-yield savings accounts with a rate of return much higher than a typical savings account.
Savings, money market, CD and rewards checking accounts are among the safest places for your money, as long as your bank or credit union is insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration.
As of March 2024, you can find banks and credit unions offering online savings accounts with a 4.5% APY or higher. Some even go above 5% APY. That's much higher compared to the national average of 0.46% APY.
At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.
The most significant public sector and one of the best banks in India was founded in 1955 and is called SBI. It is a well-known name in the country's banking industry. It serves millions of domestic and foreign customers with various banking and financial services.
Does Fidelity Have a High-Yield Savings Account? Fidelity doesn't offer its customers traditional deposit accounts like savings accounts—high-yield or otherwise.
After the modification, Federal Bank is now offering interest rates on savings accounts to customers as high as 7.15%. On the other hand, the bank will pay a maximum return on fixed deposits to the general public of 7.40% and to senior citizens of 7.90% on a specifically chosen 400-day period.
The DCU Primary Savings offers a standout 6.17% APY, but only up to $1,000 — meaning savers bank nearly $62 in a year. The fallback interest rate is then between 6.17% to 0.15% APY for balances over $1,000, so you'd want to keep the rest of your balance in a savings account offering a more promising APY.
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