Savings Accounts have been the go-to investment option for all beginner investors. Individuals who have a steady income by way of a salary or any other source are the ideal candidates for a savings account.
This type of account comes with a great many benefits which can help one start off on the road to savings and gradually build their investment portfolio. In India, most banks offer the facility of different types of Savings Accounts which are designed to suit the needs of a diverse customer base.
Features of All Savings Account Banks:
The following are the features of all savings account banks in India:
Andhra Bank
- Minimum balance required is Rs.5
- No charged for non-maintenance of minimum balance
- No cheque book will be issued
- No service charges
- No ABB facility
- No Automated Teller Machine (ATM) or debit card facility provided
- There are no restrictions on the maximum number of withdrawals
Allahabad Bank
- Designed for individuals
- No initial deposit
- No minimum balance
- No charge levied for account closure
- Non activation/ operation of in operative ‘All Bank Saral Savings Account’: NIL
- It provides the option to switch general savings bank account and also to maintain required minimum balance
AU Finance
- Minimum Balance: Rs.5,000
- RTGS, NEFT, locker facility, and demand draft facility for customers
- Debit cards are provided with great discount offers on dining, shopping, travel, entertainmenr, business, or health and wellness
- Minimal documentation
- Insurance facility is provided
- Cash deposit limit: Rs.10 lakh
Bank of Baroda
- Free debit card
- Zero balance facility
- Interest paid on a quarterly basis
- Unlimited cheque book facility
- Individuals above 18 years of age are eligible to open savings account
Axis Bank
- Zero balance account
- Instant account number
- Provides optional physical debit card/ complimentary online debit card
- Get at least 15% off on their partner
- Minimal charges on demat and lockers
- Unlimited ATM transactions at all Axis Bank and other banks’ ATMs
Bank of India
- Net banking facility
- Provides free utility bills payment facility via Epay
- Unlimited ATM transactions from Bank of India ATMs
- Issues personalised cheque book on request
- Online ITR facility
Bank of Maharashtra
- Deposit insurance coverage of up to Rs.1 lakh
- Provides free Mahabank VISA ATM cum debit card
- TDS is not charged on interest earned
- Internet Banking and mobile banking facilities are provided
Bandhan Bank
- 24/7 customer care facility
- Nomination facility is available
- Monthly e-statement, complimentary passbook, mobile banking, net banking ATM cum debit card, and Electronic Fund Transfer
Canara Bank
- Passbook facility, internet banking, telebanking, etc
- Outstation cheque of up to Rs.15,000
Citibank
- Zero transaction charge at Citibank partnered IndianOil outsets
- Free email and SMS alerts
- Citibank SMS and Online Mobile Banking and branch banking facilities
Central Bank of India
- Initial deposit required is Rs.50
- Minimum balance is Rs.50.
- Total credits in a year will not exceed Rs.1 lakh and balance in the account will not exceed Rs.50,000
- One cheque book is issued per year at free of cost
Corporation Bank
- e-Purse
- e-Payment of Tax
- e-mandate
- e-Passbook
- Apna App
- Missed Call Facility
- Advance tax payment through ATM
- Mutual funds and insurance
- Email statement
- Apply in Initial Public Offering (IPO) via ASBA
- Card to card money transfer
- Payment of LIC premium through ATM and internet banking
- Mobile recharge can be done through SMS
- Money transfer through RTGS and NEFT
Dhanlaxmi Bank
- Offers doorstep banking facility
- Minimum balance: NIL
- Free cash withdrawal facility from other banks’ ATM
Federal Bank
- One free cheque book per year
- Minimum balance: NIL
- Internet banking facility
- Proprietary ATM card
- Aadhar based credit or government benefits can be availed at free of cost
- One month statement for free
- Four withdrawals per month are allowed including ATM, branch, and cheque clearing
Digibank
- Make payments through Digibank App
- Earn up to 7% interest per annum
- First paperless, branchless, and signatureless of India
- 24/7 virtual assistance
- Unified Payment Interface (UPI) facility to manage bank accounts
- Free Visa virtual debit card Intuitive budget optimizer
- Open digital e-wallet within 90 seconds
HSBC Bank
- Zero fee on debit card
- Free four withdrawals on monthly transactions
- No funds needed to open the account
- Purchase limit: Rs.10,000
- Cash withdrawal: Rs.25,000
HDFC Bank
- Safe deposit lockers
- Zero annual maintenance charge for the first year
- Customized banking service
- Offers and discounts through online shopping
IDBI Bank
- Faster transfer of money
- Gift and travel solutions
- Best option to grow money at attractive interest rates
- International debit card
- Pay order Easy Payments and Demand Drafts
- Profit received from your Account – Value Added Services
- Online options to pay tax or bills
ICICI Bank
- Choose your own account number
- 24/7 banking service
- Get benefits with ICICI EPF account
- Contactless mobile payments and mobile banking
Indian Bank
- NEFT/ RTGS/ ECS facilities are available
- ATM cum debit cards for free for the first card
- No fee is charged for Intra City transactions except cash withdrawal and cash deposit
- No TDS on interest earned on savings bank deposits
- 50 withdrawals are allowed or free per half year excluding debit entries related to ATM/ POS / mobile or internet transactions
- Three transactions for free at ATMSs of other banks
- Nomination facilities are available
India Post Payments Bank
- Open account with Aadhar
- Account statement via SMS
- Zero monthly balance
- Scan and Pay feature for bill payment
- Funds transfer via the IMPS service
- Interest provided on quarterly basis
IndusInd Bank
- Get free monthly e-statement
- Discounts in medical and insurance
- Receive reward points on every card transaction
- Get cashback via Indus Money Program
Jammu and Kashmir Bank
- Free e-banking facility
- Free instant debit provided with an ATM withdrawal limit of Rs.0.40 lakh per day
- Nomination facility is available
- e-Banking facility is available for free
Jana Small Finance Bank
- Maintenance charge of Rs.10 to Rs.20
- Initial deposits: Rs.2,500
- Average monthly balance: Rs.2,500
- Digital account can be opened in a few minutes which has e-KYC features
Kotak Bank
- Digital Bank Account
- Facilities such as NEFT, RTGS, and IMPS will help the customers to go cashless
- Instant account opening using Aadhar card
- Open savings account through Kotak 811 Plan.
Oriental Bank of Commerce
- Free net banking facility
- Nomination facility is provided
- Free ATM cash withdrawal
Lakshmi Vilas Bank
- Free passbook facility
- Nomination facility is available
- Bank provides standing instructions facility at a minimal charge
- There are no restrictions on the deposit amount
Punjab National Bank
- Interest is calculated on a daily product basis payable quarterly
- Free internet banking
- 20 free personalized multi city cheque leaf each year
- Free net banking
- Deposits are insured by DICGC ATM cum debit card
- Free fund transfer within PNB ACCOUNTS
- Online account facility
- Safe deposit lockers available online
- Fast remittance of funds via NEFT or RTGS
Punjab and Sind Bank
- Minimum balance: NIL
- Basic banking services available for free
- Interest is paid on quarterly basis
- ATM cum debit card facility
South Indian Bank
- First ten cheque leaves for free
- Accounts can also be opened in joint names of family members
- Unlimited cash withdrawal facilities
- Nomination facilities
- Standing instruction for remittance of insurance premium and similar payments
RBL Bank
- No charge is levied on non-maintenance of savings account
- Savings account can be opened RBL Mobile 2.0 app
- Instant account opening without paperwork
- Online payment and funds transfer facilities
State Bank of India (SBI)
- E-statement facility and SMS Alerts
- Nomination facility
- Customers can avail safe deposit lockers
- Internet and mobile banking facilities
- ATM cum debit card
- Auto sweep facility
- Health insurance and personal accident insurance coverage
- Special salary accounts
- Missed call services
UCO Bank
- Free ATM cum debit card
- Nomination facility is available
- No charge on closure of accounts within 14 days
Syndicate Bank
- Residents of India can open the account
- SMS alerts
- Free ATM cum debit card
- Mobile and internet banking facility
- Customized debit card facility
Union Bank of India
- Free ATM cum debit card
- Free accidental insurance coverage via debit card
- First free 20 cheque leaves per year
- Enjoy exciting Rewards points on debit card spends
- Tabulous banking facility
- Free net banking facility
Utkarsh Small Finance Bank
- Unlimited ATM withdrawals
- Rate of interest ranging between 7% and 7.75%
- Rs.25 is charged as maintenance charge of savings account
- Unlimited ATM withdrawals
- Minimum balance needed in half yearly or quarterly basis instead of monthly basis
- Withdrawal limit: Rs.40,000
- Minimum half yearly balance for people staying in rural and semi urban areas: Rs.5,000
United Bank of India
- Nomination facility for quick disposal of balance in case of account holder’s death
- Passbook or chequebook facility is available
- Passbook or chequebook facility
- Opening joint account with partners or relatives
- Instant credit up to Rs.15,000 against collection of outstanding cheques
- ATM cum debit card
- Insurance coverage of up to Rs1.25 lakhs by paying nominal premium of Rs.17 per year under United Suraksha Scheme
Yes Bank
- Higher rate of interest
- Customized savings account facility
- SMS and mobile banking
- Internet banking facility
- Savings rewards facility
- Free utility bill payments
Vijaya Bank
- ATM withdrawal facility
- Free ATM cum debit card
- Non maintenance of minimum balance
- An individual can open the account
There are a large number of banks in India which offer customers the facility of opening Savings Accounts some of the major banks to do so are listed as follows:
Savings Bank Account Interest Rates of Banks:
Name of Bank | Rates of Interest (p.a.) |
Kotak Mahindra Bank Savings Account | Up to 4.00% |
State Bank of India (SBI) Savings Account | 2.70% |
Yes Bank Savings Account | 3.00% to 7.00% |
Citibank Savings Account | 2.50% |
Axis Bank Savings Account | Up to 3.50% |
IndusInd Bank Savings Account | Up to 6.75% |
DCB Bank Savings Account | 2.25% to 7.00% |
RBL Bank Savings Account | 7.50% |
HDFC Bank Savings Account | Up to 3.50% |
Unity Small Finance Bank | Up to 7.50% |
Karnataka Gramin Bank | Up to 2.90% |
ICICI Bank | Up to 3.50% |
- Kotak Mahindra Bank Savings Account Interest Rate :Catering to a varied customer base, Kotak Mahindra offers Savings Accounts for different customers based on their residence status. An interest rate of 3.50% p.a. to 4.00% p.a. is applicable for domestic as well as non-resident Savings Account holders.
- State Bank of India (SBI) Savings Account Interest Rate :SBI offers multiple types of Savings Accounts like Basic Savings Accounts, Savings Plus accounts, Yuva Savings Bank accounts, and more which target different levels of customers. SBI Savings Accounts carry an interest rate of 2.70% p.a.
- Yes Bank Savings Account Interest Rate:Yes Bank offers one of the most attractive interest rates when it comes to Savings Accounts. Having revised their interest rates, the bank will now offer an interest rate of 4.00% p.a. for all Savings Accounts with a balanceof up to Re.1 lakh. The interest rates are between 4.00% p.a. to 5.25% p.a.
- Citibank Savings Account Interest Rate: As one of the most prominent international banks operating in India, Citibank offers different types of Savings Accounts to customers like the Citibank Savings Account, Citibank Suvidha Salary Account, Citibank Savings Account for Expatriates and more. The interest rate offered by the bank on these savings accounts is set at 2.50% p.a., which is earned on the daily balance maintained and credited on a half-yearly basis.
- Axis Bank Savings Account Interest Rate: One of the premier banking institutions of India, Axis Bank offers a varied choice of Saving Accounts which have been specifically designed to meet specific sets of customer needs. Axis Bank offers an interest rate of from 3.00% p.a. onwards and 3.50% p.a. on all its Savings Accounts.
- IndusInd Bank Savings Account Interest Rate: To cater to the needs of a diverse customer base, IndusInd Bank offers a variety of Savings Accounts which have been designed to meet different financial needs. The bank offers an interest rate of 3.50% p.a. on savings accounts maintaining a daily balance of up to Rs.10 lakh; 4.50% p.a. is applicable for savings accounts which maintain a daily balance exceeding Rs.10 lakh.
- DCB Bank Savings Account Interest Rate: DCB Bank is one of the leading scheduled commercial banks which offers its customers the facility of opening different types of Savings Accounts. The bank offers very competitive interest rates on these accounts which can help the accountholders extract the maximum benefit from their savings. The interest rates for DCB Bank Savings Account range between 2.25% p.a. and 7.00% p.a.
- RBL Bank Savings Account Interest Rate: RBL is one of the nation's emerging scheduled commercial banks which offers its customers the facility of customized savings account schemes. The bank offers competitive interest rates to savings account holders which are credited on a half-yearly basis and vary depending on the daily balance maintained in the account. Currently, the highest interest offered is 6.00% p.a. for daily balances of more than Rs.3 crore and up to Rs.5 crore.
- HDFC Bank Savings Account Interest Rate: For those looking to open a Savings Account, HDFC offers plenty of feature-rich options. For customers to choose from. Each account comes with some unique features and privileges which make money management much easier. HDFC offers an interest rate ranging from 3.00% p.a. to 3.50% p.a..
- Unity Small Finance Bank Savings Account Interest Rate: Unity Small Finance Bank offers attractive interest rates to retail customers. Effective 30 September 2023, the interest rate for deposits of up to Rs.1 lakh is 6.00% p.a. while for deposits ranging from Rs.1 lakh to above Rs.1 crore, the interest rate is 7.00% p.a.
- Karnataka Gramin Bank Savings Account Interest Rate:Karnataka Gramin Bank offers an interest rate of 3.00% p.a. on its savings accounts. The interest is paid every quarter on 1 February, 1 May, 1 August, and 1 November.
Savings Account Interest Rates for Deposits up to Rs.1 Lakh:
The following is the list of interest rates on savings accounts for deposits up to Rs.1 lakh:
Banks | Interest Rates |
RBL Bank Limited | 4.25% |
Utkarsh Small Finance Bank Limited | 4.25% |
Fincare Small Finance Bank Limited | 4.11% |
ESAF Small Finance Bank Limited | 4.00% |
IDFC First Bank Limited | 4.00% |
IndusInd Bank | 4.00% |
North East Small Finance Bank Limited | 4.00% |
YES Bank | 4.00% |
Jana Small Finance Bank Limited | 3.50% |
Suryoday Small Finance Bank Limited | 3.50% |
Savings Account Interest Rates for Deposits from Rs.1 Lakh to Rs.5 Lakh:
Here is the list of savings accounts from different banks and their corresponding interest rates for deposit amounts ranging between Rs.1 lakh to Rs.5 lakh:
Banks | Interest Rates |
DBS Bank | 7.00% |
Jana Small Finance Bank Limited | 5.00% |
Suryoday Small Finance Bank Limited | 5.00% |
Utkarsh Small Finance Bank Limited | 6.25% |
Fincare Small Finance Bank Limited | 7.11% |
Bandhan Bank Ltd. | 6.00% |
Ujjivan Small Finance Bank Limited | 5.00% |
RBL Bank Ltd. | 5.50% |
Equitas Small Finance Bank Limited | 5.00% |
YES Bank Ltd. | 4.00% |
Savings Account Interest Rates for Deposits from Rs.5 Lakh to Rs.10 Lakh:
The following is the list of savings accounts interest rates for deposits ranging between Rs.5 lakh to Rs.10 lakh:
Banks | Interest Rates |
Fincare Small Finance Bank Limited | 7.50% |
Equitas Small Finance Bank Limited | 7.00% |
Jana Small Finance Bank Limited | 7.50% |
Suryoday Small Finance Bank Limited | 7.25% |
Ujjivan Small Finance Bank Limited | 7.50% |
Utkarsh Small Finance Bank Limited | 7.50% |
DCB Bank Ltd. | 5.25% |
Bandhan Bank Ltd. | 6.00% |
DBS Bank Ltd. | 5.00% |
RBL Bank Ltd. | 5.50% |
Savings Account Interest Rates for Deposits from Rs.10 Lakh to Rs.1 Crore:
The following is the list of savings accounts interest rates for deposits ranging between Rs.10 lakh to Rs.1 crore:
Banks | Interest Rates |
DCB Bank Ltd. | 8.00% (from Rs.50 lakh to Rs.2 crore) |
Jana Small Finance Bank Limited | 7.50% |
Utkarsh Small Finance Bank Limited | 7.25% from Rs.25 lakh to Rs. 10 crore |
AU Small Finance Bank Limited | 7.00% from Rs.25 lakh to less than Rs.1 crore |
Ujjivan Small Finance Bank Limited | 7.50% |
Fincare Small Finance Bank Limited | 7.50% |
RBL Bank Ltd. | 7.50% from Rs.25 lakh to Rs.7.5 crore |
Suryoday Small Finance Bank Limited | 7.50% from Rs.50 lakh to Rs.1 crore |
Bandhan Bank Ltd. | 6.25% |
ESAF Small Finance Bank Limited | 7.50% for deposits above Rs.15 lakh |
Savings Account Interest Rates for Deposits above Rs.1 Crore:
The following is the list of savings accounts and the corresponding interest rates for deposits above Rs.1 crore:
Banks | Interest Rates |
DCB Bank Ltd. | 8.00% from Rs.50 Lakh to less than Rs.2 crore |
Jana Small Finance Bank Limited | 7.50% for up to Rs.10 crore |
Utkarsh Small Finance Bank Limited | 7.25% above Rs.25 lakh up to Rs.10 crore |
Equitas Small Finance Bank Limited | 7.00% |
Ujjivan Small Finance Bank Limited | 7.50% from above Rs.5 lakh to Rs.25 crore |
SBM Bank (India) Limited | 7.25% for deposit more than Rs.50 Lakh to Rs.50 crore |
Bandhan Bank Ltd. | 7.00% for deposit amount above Rs.50 crore to Rs.100 crore |
ESAF Small Finance Bank Limited | 7.50% |
YES Bank Ltd. | 7.00% for deposit amount more than or equal to Rs.1 crore to less than Rs.10 crore |
Shivalik Small Finance Bank | 6.00% for amount above Rs.1 crore to Rs.2 crore |
Benefits of Savings Account:
The following benefits come with a savings account:
- A savings account is a secure way to save your money. The process of withdrawing and depositing money is simple and hassle-free. Since you do not have to carry cash, the risk of theft is eliminated.
- If you want to avail benefits from government schemes and receive subsidies, you need to have a savings account. To remove the middlemen, the government is encouraging direct benefit transfer systems so that benefits are transferred to your savings account. Several banks offer a Zero Balance Savings Account that has no minimum balance requirements.
- When you deposit money in a savings account, you will earn interest. The interest rates may vary from bank to another. While some banks only pay 4% interest, others can charge as much as 6% per year.
- A savings account can be used to make day-to-day purchases as well as travel and entertainment purchases. You can avail exciting offers, discounts, and rebates through internet banking and debit cards.
- The government's recent push for digital payments has paved the way for increased usage of savings accounts. You can avail various online payment channels such as NEFT, UPI, IMPS, RTGS, and internet banking with your savings account.
- With a savings account, you can send and receive money at your convenience. This allows you to manage payments easily and without concern.
- A savings account keeps a record of your payments and receipts. This enables you to understand and manage your money well.
Types of Savings Accounts:
There are numerous savings accounts and you must choose the one that aligns with your financial objectives. The different types of savings accounts are as follows:
Savings Account (Traditional or Regular):
Regular savings accounts, also referred to as basic savings accounts, enable you to receive lesser interest rates on your money compared to other savings products. With this type of a savings account, you can make withdrawals up to six times every month without incurring any fees.
Money Market Account:
Money Market Accounts (MMAs) bring together the advantages of a savings account and a checking account. You can open this account at traditional as well as online banks. These accounts provide a higher rate of interest compared to regular savings accounts. A cheque facility is available, and you can also withdraw money through a debit card or ATM.
Cash Management Account:
Cash management accounts are different from savings accounts. The money can be retained in this account until you can transfer it to a retirement or taxable brokerage account. When compared to regular savings accounts, these accounts earn higher interest rates.
High-Yield Savings Account:
Deposits who wish to earn higher interests can open high-yield savings accounts offered by online banks. Along with higher rates, online banks often charge lower withdrawal fines and monthly maintenance.
Specialty Savings Account:
Specialty savings accounts are designed to assist you in meeting specific savings goals. In other cases, they may be tailored for a specific type of person instead of a particular function. Some examples of specialty savings accounts include student savings accounts, home down payment savings accounts, and health savings accounts.
Certificate of Deposit Account:
Certificate of deposit account (CD) is a time deposit which means you commit to keep your money in the account for a particular amount of time. During that period, your money earns interest. Upon maturity, you can choose to withdraw or transfer it into a new CD. While these accounts can be opened at both online and traditional banks, online banks offer higher interest rates.
Process to Open a Savings Account Online:
The steps to open a savings account online are listed below:
Step 1: Explore the various banks and their interest rates to find the one that meets your requirements.
Step 2: Choose the type of savings account you wish to book at your preferred bank.
Step 3: Visit the official website of the bank with which you wish to open an account.
Step 4: Fill out the application for your preferred savings account.
Step 5: Submit the application along with a digital copy of your identity proof, income proof, age proof, address proof, and photographs. Some banks may ask you to give physical copies of your documents, for which you will be contacted by an executive.
Step 6: After the bank has validated your details, you can start using your savings account.
Process to Open a Savings Account Offline:
The steps to open a savings account offline are listed below:
Step 1: Check the interest rates offered by different banks and find the one that meets your requirements.
Step 2: Choose the type of savings account you wish to book at a bank of your choice.
Step 3: Visit the nearest branch of the bank.
Step 4: Fill out the application form and submit it along with your identity proof, income proof, age proof, address proof, and photographs.
Step 5: Upon submission, the bank will process your request. Typically, it takes 1 to 12 working days for your savings account to be operational.
How to Choose a Savings Account?
It can be difficult to select a savings account considering the myriad options available in the market. Here are some factors you should consider before selecting a savings account:
- Rate of interest: One of the most significant considerations is the interest rate offered by your savings account. Banks usually offer interest rates that range from 2.70% to 7.00% p.a. Also, ensure that you can fulfil the minimum balance criteria and any other terms and conditions.
- Service/transaction charges: Examine the terms and conditions of your savings account to check if any charges and fees associated with it. You can choose to disregard expenses for features that you don’t use frequently. If your account balance surpasses a certain amount, you will to pay an administrative fee.
- Debit card offers: On opening a savings account, a cheque book and additional cards will be issued. You can use your debit card to avail discounts and offers on movie tickets, restaurants, and groceries. Check to see if these freebies are suited for you.
- Minimum balance: Check whether your savings account is a zero-balance account or you have to maintain a minimum balance. If the money in your account is less than the specified limit, the bank may levy a penalty.
- Online accessibility: Before opening a savings account, make sure that the bank has good digital banking facilities.
GST of 18% is applicable on all banking products and services from 15 September 2023 onwards.
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Savings Account Trending Pages
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FAQs on Savings Account with Highest Interest Rates 2024
- What is a savings account?
A savings account is a deposit account held with banks/financial institutions. It comes with favourable interest rates and a high level of liquidity.
- How do savings bank account interest rates work?
Under the new RBI regulation, interest on savings accounts is calculated daily based on your closing balance. You will receive interest in your savings account every quarter or six months on the kind of savings account and the policy of the bank.
- Can I open a savings account online?
Yes, most banks offer the option of opening a savings account online.
- How to choose a savings account?
When selecting a savings account, you must consider factors such as interest rates, service charges, minimum balance, customer service, etc.
- Can a savings account go dormant?
Yes, your savings account will become dormant if you do not make any transactions in it for more than two years.
- Is it possible to open a joint savings account?
Yes, you can open a savings account jointly. A joint account can be opened by anyone over the age of 18 years. Minors are permitted to open joint accounts with one of their parents serving as the other signatory.
- Can I open a DEMAT Account with my savings account?
Yes, you can open a DEMAT Account with your savings account.
- How can I make a deposit into my savings account?
You can fund your savings account with cash, bank draft, or cheque. You can deposit cheques and drafts at the bank's designated drop box locations. You can also deposit cash at specific ATM machines that accept deposits or at the bank's cash counter.
- Is there a minimum opening balance for a savings account?
The minimum opening balance of a savings bank account depends on the banks, features of the account and services. The minimum balance for regular customers ranges from Rs.0 to Rs.25,000 and for premium customers the minimum balance is Rs.2 lakh or more.
- Are there any restrictions with regard to age, income etc., for opening a basic Savings Account by banks for individuals?
No, there are no restrictions regarding age or income for opening a basic savings account for an individual.
- What are the various types of accounts based on minimum balance requirements?
There are primarily three different types of accounts depending on the minimum balance requirements. The account types are Classic, Gold, and Platinum with minimum balance amount are Rs.10,000; Rs.10,000 to Rs.25,000; and more than Rs.25,000 (Between Rs.50,000 to Rs.1 lakh, approx.)
- How is the average monthly balance calculated?
The average monthly balance is calculated by determining the total of daily closing credit balance in the account and dividing the amount by number of days in the month. If the amount is less than the required balance amount, then a penalty will be charged for non-maintenance of minimum balance at the beginning of the month.
- Is there a difference between a private bank savings account and one offered by a public bank?
There is no difference in the services provided by the private and public sector banks. While the basic difference between the savings account between private a public sector banks lies in the minimum balance requirement of the account, which is often higher for the private sector banks.
- What are the charges levied on my account if the required minimum monthly balance is not maintained?
Charges cannot be levied on savings account for non-maintenance of minimum account balance as the guidelines set by the Reserve Bank of India. While the bank levies charges on operational or active accounts for non-maintenance of minimum account balance, apart from service tax and Education Cess at an applicable rate.
- When is the interest earned on my saving account deposited or credited into my account?
The interest earned in the savings account is deposited into the account on a quarterly basis.
- How do I activate a ‘Dormant’ Savings Account?
To activate a dormant savings account, you need to visit the bank to meet the bank staff in person and submit a written request for activation of dormant account. Provide copies of recent identification proof and address proof for verification. Once the account is activated, you can initiate account transaction through cash withdrawal or by using cheque.