Savings account is a secure and one of the most popular investments. Most banks in India offer savings accounts. Savings accounts interest rates are attractive. Interest on savings bank account is calculated on a daily basis and are credited in a periodic manner.
Below is the table of bank savings account interest rate of various banks to help you compare savings account interest rates:
|Bank||Saving Interest Rates|
|Axis Bank Savings Account||3% - 4%|
|HDFC Savings Account||3% - 3.50%|
|ICICI Savings Account||3% - 3.50%|
|IDFC FIRST Bank Savings Account||Up to 5%|
|Kotak Mahindra Bank Savings Account||3.50%|
|PNB Saving Account||2.80% - 2.90%|
|SBI Savings Account||2.70% - 2.75%|
|Bank of India Saving Account Interest Rate||2.90%|
|Union Bank Saving Account||3% - 3.50%|
|Yes Bank Savings Account||4% - 5.25%|
Following are some attractive benefits of opening a savings account:
Additional Info: Check Top Zero Balance Savings Account in 2022.
The bank account interest amount accumulated on a savings account is considered as “Income from Other Sources” and must be filed for Income Tax Returns. However, TDS is not applicable on a savings account according to the Section 194 A of Income Tax Act. Saving deposit rate amount above Rs. 10,000 will be taxed on marginal tax rate of the account holder. Interest from a savings account is considered as a deduction and not an exemption. The deduction is permitted for interest income up to Rs. 10, 000 only and that is why, you must open a savings account in a recognized private bank, public bank or with the post office.
You can use a Savings Account Interest Calculator to check the interest you can get from your savings account. In this Calculator, you will have to enter some basic information such as average balance and saving deposit interest rate applied by the bank. Also, you will have to select if the sb account interest will be credited on a monthly, quarterly, half yearly or yearly basis to your account. The calculator will instantly provide the savings account return amount that you will get for the daily balance as well as the savings account interest rate.
Following are the top 5 banks that offer highest saving account interest rate in India:
|Yes Bank||4% - 5.25%||Rs. 10,000|
|IDFC FIRST Bank||Up to 5%||Rs. 10,000|
|Axis Bank||3% - 4%||Nil|
|ICICI Bank||3% - 3.50%||Rs. 2,000 - Rs. 10,000|
|HDFC Bank||3% - 3.50%||Rs. 2,500 - Rs. 10,000|
Yes, saving bank interest amount above Rs. 10, 000 will be taxed at a marginal tax rate of the concerned account holder.
Yes Bank pays the highest current bank account interest rates, i.e. 4% to 5.25% p.a.
Current savings account interest rates vary from 2.70% to 5.25% p.a.
You can avail up to Rs. 10,000 deduction on the total accumulated bank savings interest rates amount under Section 80TTA of the Income Tax Act. This TDS on savings bank interest is available to an Individual and HUF. In case your total savings account interest income is less than Rs. 10,000, you do not have to pay any tax on it.
If you are wondering how banks calculate interest on savings account, here is the answer. The savings interest rates are calculated every day depending on the account holder’s closing balance, as per the new RBI regulation. If you wonder how to calculate interest on savings account, you can use saving account interest calculator to know how much the bank pays interest on your savings account. As per Reserve Bank of India regulations, the interest credited by bank to depositors' accounts on a quarterly basis. However, effective from July 1 2021, they are free to credit it on a monthly basis.
You can use the SBI saving account interest rate calculator to know the interest amount you can earn on an SBI savings account. Savings account interest calculator SBI is available online for free.