A savings bank account has become one of our primary requirements today. The main reason why people prefer savings accounts over other money-saving schemes is that the principal amount is always safe and easily accessible.
But, apart from the security, who wants to deny the extra interest? Especially, when there are so many banks providing lucrative rates of returns. It is therefore wise to open an account in the bank that offers the highest interest rate on your savings.
The minimum balance that is necessary to open a savings account varies between different banks. Each bank has a minimum balance that the account holder has to maintain in order to avoid paying maintenance fees. However, the primary determinant still remains the same – interest rates. People prefer the banks that can fetch them higher returns and liquidity as well.
Here is a list of 6 banks that offer the highest rates of interest in a stipulated time along with minimum balances:
- Kotak Mahindra Bank
Kotak Mahindra Bank provides its customers with the entire digital banking services on their mobile phones. You can access all of the bank’s services through its app and it is called “811 digital bank account.”
In order to open an account, you need an Aadhaar or PAN card for KYC reasons. It also provides you with a virtual debit card that allows you to scan and pay your bills. There is no minimum balance that is required to be maintained.
| Account balance | Interest rate per annum (%) |
| Below Rs. 1 lakh | 5.00 |
| Between Rs. 1 Lakh and 1 crore | 6.00 |
| Above Rs. 1 crore | 5.50 |
- AU Small Finance Bank
A savings account in the AU Small Finance Bank offers monthly interest payout, more locker hours and an easy deposit process. This bank also provides an auto-upgrade feature after a period of time which allows the customer to enjoy more privileges and benefits. There is no minimum balance to be maintained.
| Account balance | Interest rate per annum (%) |
| Below Rs. 1 lakh | 5.00 |
| Between Rs. 1 Lakh and 10 Lakhs | 6.10 |
| Between Rs. 10 lakhs and 50 Lakhs | 6.25 |
| Between Rs. 50 Lakhs and 10 Crores | 6.40 |
- Yes Bank
This bank provides customized savings accounts for customers who have specific needs and is India’s fourth-largest private sector bank. Customers have the flexibility to choose the pricing options which is an alternative to maintaining a minimum balance. Most of the non-salary savings accounts have a minimum balance of Rs. 10,000.
| Account balance | Interest rate per annum (%) |
| Below Rs. 1 lakh | 5.00 |
| Between Rs. 1 Lakh and 1 Crore | 6.00 |
| Between Rs 1 Crore and 100 Crores | 6.25 |
- Ujjivan Small Finance Bank
An account with the Ujjivan Small Finance Bank provides its customers with the facility of debit cards, RTGS, IMPS and NEFT transactions. Such an account can be opened easily at any one of the bank’s branches. No minimum balance is required. Interest is calculated daily at the end of the day and is credited quarterly, that is on 31 March, 30 June, 30 September and 31 December.
| Account balance | Interest rate per annum (%) |
| Up to Rs. 5 lakhs | 4.00 |
| Between Rs. 5 Lakhs and 50 lakhs | 5.50 |
| Between Rs. 50 lakhs and 5 Crore | 6.75 |
| Above Rs. 5 Crore | 7.00 |
- Digibank by DBS
This Singapore based bank facilitates branchless banking through your Adhaar or PAN number. But it is different from Digibank e-wallet as the e-wallet does not earn any sort of interest. An account can be opened by downloading the Digibank e-wallet and then converting it into a DigiSavings account. Money can be transferred into the account through UPI. The required minimum quarterly balance is Rs.25,000 for the metro branches and Rs. 10,000 for the non-metro branches. The bank also supports zero balance savings accounts.
| Account balance | Interest rate per annum (%) |
| Up to Rs. 1 lakhs | 5.50 |
| Between Rs. 1 Lakhs and 2 lakhs | 7.00 |
| Between Rs. 2 Lakhs and 5 lakhs | 5.00 |
| Above Rs. 5 lakhs | 4.00 |
- IDFC First Bank:
Previously known as IDFC Bank, it came into existence in December 2018 after merging with a non-financial company, Capital First Ltd. All you need to open a savings account in this bank is a photograph and a government-approved ID proof along with your PAN card. The minimum balance is Rs.25,000 along with an option of zero balance savings account.
| Account balance | Interest rate per annum (%) |
| Up to Rs. 1 lakh | 6.00 |
| Above Rs.1 lakh | 7.00 |
