Why is a savings account required?
A savings account is required to make payments, to send and receive money, pay debts, invest, and do other financial transactions. A savings account can be used to pay utility bills as well as mobile phone recharges. Simply put, you need a savings account to protect your money against theft, loss, and destruction (calamities can happen at any time), as you can only carry or store a certain amount of cash without feeling constantly on the edge.
The interest rate on savings accounts varies depending on the bank, type of account, and amount.
Here is a comparison of savings account interest rates of Post Office savings accounts, , HDFC Bank and .
Post Office Savings account interest rate
Individuals can open a savings account with India Post with a minimum deposit of Rs. 500. The Post Office savings account interest will only be credited in whole rupees and will be calculated based on the minimum balance between the tenth and last day of the month. If the balance between the tenth and the last day of the month is less than Rs. 500, no interest will be paid in that month. At the end of each fiscal year, interest will be credited to the account.
The annual interest rate is 4.0 percent.
HDFC Bank savings account interest rateHDFC Bank offers different types of savings accounts depending on occupation and various other factors. Interest from the savings bank is based on the daily balances that are kept in your account. Interest on savings accounts will be paid every three months.
HDFC Bank offers a 3% interest rate on amounts less than Rs 50 lakh and a 3.5 percent interest rate on amounts greater than Rs 50 lakh.
ICICI Bank savings account interest rate
Interest on savings bank accounts is computed daily at the rate set by ICICI Bank on the daily closing balance in the account. The calculated interest is rounded to the closest rupee. Interest will be paid quarterly in March, June, September, and December.
For end of day balances below Rs 50 lakh, the interest rate offered is 3.00 percent, and for amounts above Rs 50 lakh, it is 3.5 percent.
Equitas Small Finance Bank
For savings accounts held with Equitas Small Finance Bank, interest will be computed based on the account’s daily closing balance. Quarterly interest payments will be made directly to the savings account. Slab rates are applicable on the incremental amount based on the closing balance.
The interest rate offered is 3.50 percent for amounts up to Rs 1 lakh. Above Rs 1 lakh and up to Rs 5 lakhs, the interest rate is 6%, and above Rs 5 lakhs and up to Rs 2 crores, the interest rate is 7%.