Best High-Interest Savings Account To Choose

Opening a savings bank account is the most fundamental thing to do while commencing a financial journey. Debit cards, low monthly balance requirements, amazing rewards, attractive discounts and cashback, and several other advantages come with savings accounts that satisfy an individual’s all financial and banking demands. They deposit money safely and provide adequate liquidity while enabling account holders to earn interest on their deposits. Therefore, choosing a high interest savings account would be a wise step to make a considerable amount from your hard-earned money.

Before opening a savings bank account, one must be familiar with the bank’s interest rate and other facilities. Let’s discuss some of the best high-interest savings accounts you can open in India.

• RBL Bank Savings Account

RBL Bank allows consumers to open different types of high-interest savings accounts with various features and benefits. For all deposits made into the accounts, the bank offers lucrative interest rates with additional features like a free RuPay debit card, unlimited free cash withdrawals at all RBL Bank ATMs across India, mobile banking, net banking, phone banking, etc. Specialised savings accounts for senior citizens and women provide even higher interest rates.

• SBI Savings Account

Based in Mumbai, this Fortune 500 company is over 200 years old and is a reputed name in offering different savings accounts. Some of its salient features include no MAB requirement, no restrictions on maximum account balance, transactions through the mobile app, etc.

• HDFC Bank Savings Account

HDFC bank provides complete banking services to its customers, including free debit cards, net banking, other features along with high-interest rates, specifically to women and senior citizens. With a unique set of benefits and features, one can access high earnings on their savings easily and quickly. Customers can open a bank account suitable to their needs and avail of the best banking services and features in India.

• Kotak Mahindra Bank Savings Account

Choose any of the Kotak Mahindra savings bank account types with different benefits and features. With a nominal minimum balance requirement, account holders avail of free unlimited cash withdrawals, free debit card, net banking and mobile banking facilities, etc. Kotak Mahindra account holders can access various financial services and higher interest rates than standard accounts from other banks.

Also Read: The Importance of Having a Savings Account

• DCB Bank Savings Account

No minimum balance requirement and a free ATM card are unique features that differentiate a DCB Savings Bank Account from others. Along with high-interest rates, account holders can also use free RTGS and NEFT services and net banking, phone banking, and mobile banking facilities without extra charges. Moreover, the bank also offers physical and e-account statements, free damaged debit card replacement, and unlimited cash withdrawals at all DCB Bank ATMs.

Factors Affecting Savings Accounts Interest Rates

At an economic level, the savings account interest rates largely depend on the valuations central banks and government use to manipulate the economy. Here are a few factors that influence the interest rates for savings accounts:

• Money Demand: Growing economies like India have differing money demands at various times. Business owners need short-term or long-term funds to facilitate their production activities. Citizens borrow money to purchase homes and cars and fulfil other financial needs. During tough economic times, both individual and corporate customers borrow less money. As the demand for money increases, the interest rates increase too. Similarly, when the money supply increases, the interest rates go down.
• Government Borrowing and Fiscal Deficit: A fiscal deficit occurs when the government spends more money than its revenue. It borrows money to fund this deficit, which eventually influences money demand and increases interest rates. 
• Inflation: Prices of all commodities depend on inflation, including interest rates. Since consumers sacrifice their consumption during a high inflation scenario, they get compensated with higher savings accounts interest rates. 

Now that you know the best high-interest savings account options in India, remember that interest rate is not the only factor one must consider when they open new bank account. They must evaluate the pros and cons of different options by comparing their features. Go through their account opening procedures and explore other benefits before finalising one. Although no definite bank can be the best option for all, these are some of India’s highest interest-rate savings accounts.