Bank saving account interest rate: A new benchmark has been set by the Reserve Bank of India (RBI) in which, while taking a loan becomes much cheaper for borrowers than earlier. RBI has asked banks to link their lending interest rates with three external benchmark one including policy repo rate, and not MCLR henceforth from April 1, 2019. But while we were busy wondering how EMIs will lessen going forward, the largest lender State Bank of India (SBI) shifted the attention towards savings account interest rate. What SBI has done is that it not only linked its short term loan with RBI policy repo rate, but also savings deposit above Rs 1 lakh. If you look closely, private lender HDFC Bank has also linked its savings account with policy repo rate, however, at a different set of deposits.

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Now, this brings up the main question, who offers best savings account interest rate to customers. Hate to break it, but it is neither SBI or HDFC Bank, but Kotak Mahindra Bank that offers way much higher interest rate than other lenders even compared to ICICI Bank and Punjab National Bank. Let’s find out the best!

SBI saving account interest rate:   

Deposits made in SBI’s savings account below Rs 1 lakh will not be linked with policy repo rate. But, above Rs lakh deposits made will be linked with every change in RBI’s repo rate. Currently, SBI has pegged its interest rates above Rs 1 lakh deposits at 3.50% which is lower by 2.75% compared to repo rate. 

Interestingly, if in upcoming policy, RBI decides to cut further repo rate, then savings account above Rs 1 lakh investment will also see downward revision in their interest. Generally, when RBI hikes repo rate, it is a good news to depositors, and in the midst repo rate cut it would be borrowers who see cheaper loans. 

HDFC Bank saving account interest rate: 

For deposits made below Rs 50 lakh, the bank is offering 3.50% interest rate. However, if deposits are made between Rs 50 lakh but less than Rs 500 crore - then a customer will enjoy 4% interest rate on their savings. 

Notably, savings made above Rs 500 crore, HDFC Bank gives interest rate in the form of RBI repo rate plus 0.02%. This means 6.25% + 0.02% will result in 6.27% interest rate on above Rs 500 crore deposits. 

ICICI Bank saving account interest rate:   

A customer who makes savings below Rs 50 lakh, here will enjoy 3.50% interest rate. Meanwhile, deposits made at Rs 50 lakh and above - a 4% interest rate will be given to the depositors. 

At ICICI Bank, interest is calculated on a daily basis on the daily closing balance in the Account, at the rate specified by the bank in accordance with Reserve Bank of India directives. The interest amount calculated is rounded off to the nearest rupee.

PNB saving account interest rate:   

Just like HDFC Bank and ICICI Bank, even PNB offers 3.50% interest rate on deposits made below Rs 50 lakh in their savings account. 

Further, deposits at Rs 50 lakh and above, a customer will earn 4% interest rate. 

If there is any bulk deposits, then PNB advices to visit the bank branch. 

Kotak Mahindra Bank saving account interest rate:   

This one is a real winner in giving best interest rate on savings account compared to above mentioned major banks. At Kotak, a customer enjoys 5% interest rate on their deposits up to Rs 1 lakh. The interest rate goes higher to 5.5% on balances above Rs 1 crore, meanwhile, a 6% interest rate is given on investment made above Rs 1 lakh but up to Rs 1 crore. 

Similar interest rate is also given to senior citizens as well. 

Thereby, from above it is quite clear that, it is Kotak Bank that offers much better interest rate on small deposits. 

Bank saving account interest rate is referred to as the most basic and traditional pattern of investment where you can deposit your money or funds and earn more from it. There are monthly withdrawals allowed in savings account, however, one must not exhaust the minimum average balance or else charges will be levied upon on you.