10 High Interest Saving Account in India

While interest rate are on downwards slope across the world and India is also moving in same direction. Most of the public sector and private sector banks in India are only offering 2.5-4% annual interest on their saving accounts. There are few private sector banks who are offering interest rate up to 7.25% on their saving account even in today’s time.

We did analysis of all these banks offering high interest saving account in India. in this article we will cover 10 best saving accounts which offers highest interest rate with other facilities.

Best high interest savings account in 2021

1. RBL Bank Advantage Saving Account

One of the India’s fastest growing private sector bank , RBL Bank Advantage Saving Account is high interest saving account in India. RBL Bank pay 6.75% p.a. for account balance > 10 Lac and up to 6 Cr; 6.00% p.a for account balance > 1 Lac and up to 10 Lac and 4.75% p.a. on balance up to 1 Lac maintained on daily basis. The initial 1 Lac will earn 4.75% p.a and above slabs will be applicable only on the entire amount above 1 Lac.

High interest savings account details are as below

Interest Rates Details4.75% – 6.75% p.a
Account Opening ModeOnline through website
Monthly Average BalanceRs. 0-25000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr6.85% p.a
copyright 2020 @makecashworks.com

Advantages

  • You can choose your own account number.
  • Higher interest rates.
  • You will get Platinum Master Card Debit Card with enhanced limits.
  • Online Banking facility.
  • Daily cash withdrawal limit of up to 1 Lac.
  • 15% off on Safe Deposit Locker.
  • 25% discount on processing fee for Loan Against Property.

Disadvantage

  • Higher slabs are applicable only on the balance above 1 Lac on daily closing basis.

Note : Best for people who are looking to get highest interest rates without locking their money in Fixed Deposit schemes.

2. IndusInd Bank Saving Account

Headquartered in Pune ,offers commercial, transnational and electronic banking products and services. IndusInd Bank offers different types of savings accounts to meet the requirements of customers. Banks offer attractive interest rate of 4% p.a on daily balance <= 1 Lac; 5% on daily balance < 10 Lac and 6% p.a. on daily balances above 1 Lac.This is actually higher than the interest rate offered by leading bank fixed deposit rates.

High interest savings account details are as below

Interest Rates Details4% – 6% p.a
Account Opening ModeOnline through website
Monthly Average BalanceRs. 1500-10,000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr6.5% p.a
copyright 2020 @makecashworks.com

Advantages

  • You can choose your own account number.
  • Higher interest rates.
  • Online Banking facility.
  • 200 cashback of app signup.
  • Flat Rs. 60 cashback on you first bill payment.
  • 50% cashback ,up to Rs. 100 , on three cab booking.
  • 50% cashback, up to Rs. 100, on your first food order.
  • 15% cashback, up to Rs. 50 on your first mobile/DTH Recharge or postpaid bill payment.

Disadvantage

  • Higher slabs are applicable only on the balance above 10 Lac on daily closing basis.(Auto sweep in facility can be used so its nothing to worry about.)

Note : Best for people who are looking to get highest interest rates and attractive joining offers without leaving the comfort of their home.

3. IDFC First Bank Savings Account

Headquartered in Mumbai, IDFC First Bank started operating in India on 1st October 2015. Bank offers Highest Interest rate of 7% p.a. account balance < 1 Lac ; 6% p.a on account balance < 1 Lac.

One of the biggest benefit of going with IDFC First bank is they don’t charges penalties if you forgot to maintain minimum balance. They only start charging you for the facilities used if you don’t maintain minimum balance otherwise they are free.

On 11th March 2020, The Bank has Signed Mr. Amitabh Bachchan as its brand ambassador.

High interest saving account details are as below

Interest Rates Details6% – 6.75% p.a
Account Opening ModeOnline through website
Monthly Average BalanceRs. 25,000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr6.75% p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • Free multiple transfer of fund
  • Personal accidental insurance of 25 Lac.
  • Free Visa Debit card for lifetime.
  • Free airport lounge access in major city, twice every quarter.
  • Rs. 250 cashback every months on BookMyShow.
  • Free ATM Transactions at any bank or any network.

Disadvantage

  • Higher monthly balance required to avail the benefits.
  • Services are available in big cities in India.

Note : Best for people who are looking to get highest interest rates and lowest account maintenance changes.

4. Bandhan Bank Saving Account

Headquartered in Kolkata, Bandhan Bank was Inaugurated by Late Shree Arun Jaitley on 23 August 2015. Presently, Bandhan Bank has 4701 banking outlets across pan-India serving more than 2.08 crore customers. Bank offers Highest Interest rate of 7.15% p.a. on daily account balance > 50 Crore ; 6.55% p.a. on daily account balance < 50 crore and =>10 crore ; 6% p.a. on daily account balance >= 1 Lac and daily account balance <=10 crores ; 3% p.a. on account balance < 1 Lac.

High interest saving account details are as below

Interest Rates Details3% – 7.15% p.a
Account Opening ModeOnline through website
Monthly Average BalanceRs. 0 – Rs. 100,000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr5.75% – 6% p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • Any branch banking facility.
  • Free lifetime Debit card facility.

Disadvantage

  • Higher interest rate in on incremental balances above 1 Lac.

Note : Best for people who are looking to get highest interest rates .

5. DigiBank BY DBS

DBS is a singaporean multinational banking and financial services corporation . digibank, powered by DBS, is an entire bank squeezed to fit into your smartphone. bank offers high interest rate of 3.5% p.a on balance below 1 Lac ; 6% p.a. on balance >1 Lac and < 2 Lac ; 4% p.a. on balance above 2 Lac.

You can easily open saving bank account with Digi Bank using your Adhaar. This is truly digital bank account,where you will only have contact points. There will not be any support via Bank branches.

High interest saving account details are as below

Interest Rates Details3.5% – 6% p.a
Account Opening ModeVia Digi App
Monthly Average BalanceRs. 5000 MAB
FacilitiesOnline and Mobile Banking
FD Rate => 1 yr and <= 2 yr4.05 % p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.

Disadvantage

  • Higher interest rate in on incremental balances.
  • Low interest on balance above 2 Lac.
  • No branches for support.

Note : Best for people who are looking to do everything online and earn higher interest rates .

6. AU Small Finance Bank Saving Account

AU Small Finances Bank is a private commercial bank founded as vehicle finance company in 1996 and converted to small finance bank in 2017. Bank pays high interest rate of 7% for account balance > 10 Lac and up to 5 crores ; 6% for account balance > 5 Lac and up to 10 Lac ; 5% for account balance > 1 Lac and up to 5 Lac and 4% for account balance below 1 Lac.

High interest saving account details are as below

Interest Rates Details4% – 7% p.a
Account Opening Modeonline via website
Monthly Average BalanceRs. 0 – Rs. 5000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr6.50 % p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • Anywhere banking facility.
  • EFT, RTGS, Demand Draft and locker facility.
  • Choice of Debit Card.

Disadvantage

  • Higher interest rate in on incremental balances.
  • Limited branches across India.

Note : Best for people who are looking for high interest rate on saving account.

7. Jana Small Finance Bank Saving Account

Microfinance lender, Jana Bank started its operations on March 28,2018. Jana Bank has 270 banking outlets (including 25 business correspondence outlets), 298 asset centers and 120 ATM across India. Bank pays high interest rate of 7.25% for account balance > 5 Crores ; 7% for account balance > 10 Lac and up to 5 Crores ; 6% for account balance > 1 Lac and up to 10 Lac and 4% for account balance below 1 Lac.

High interest saving account details are as below

Interest Rates Details4% – 7.25% p.a
Account Opening ModeVisit nearest Branch
Monthly Average BalanceRs. 2500 – Rs. 200,000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr7.19% p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • No Charges on NEFT/RTGS fund transfer.

Disadvantage

  • Higher interest rate in on incremental balances.
  • Very limited branches across India.

Note : Best for people who are looking for high interest rate on saving account.

8. Ujjivan Small Finance Bank Saving Account

Headquartered in Bangalore, Ujjivan Small finance bank started its operation on 1st Feb 2017. Ujjivan Small Finance Bank serves over 54.7 lakh customers through 575 branches and 17,370 employees spread across 244 districts and 24 states and union territories in India.

Bank pays high interest rate of 6.50% for account balance > 5 Crores ; 6.25% for account balance > 50 Lac and up to 5 Crores ; 5.25% for account balance > 5 Lac and up to 50 Lac ; 5% for account balance > 1 Lac and up to 5 Lac and 4% for account balance below 1 Lac.

High-interest saving account details are as below

Interest Rates Details4% – 6.50% p.a
Account Opening ModeOpen via website
Monthly Average BalanceRs. 0 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr6.50% p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • No minimum balance requirements.
  • Unlimited free transactions at Ujjivan Bank ATM.
  • Free Debit card for one year.
  • Free Transaction SMS alerts.
  • Exclusive offers on shopping,restaurants etc.

Disadvantage

  • Higher interest rate in on incremental balances.
  • Branches mainly in major cities across India.

Note : Best for people who are looking for high interest rate on saving account.

9. Utkarsh Small Finance Saving Account

Headquartered in Varanasi, utkarsh small finance bank started as Micro Finance Institution (NBFC-MFI) has become a Small Finance Bank . Bank pays high interest rate of 7.25% for account balance > 25 Lac; 6% for account balance > 1 Lac and up to 25 Lac and 5% for account balance below 1 Lac.

High-interest saving account details are as below

Interest Rates Details5% – 7.25% p.a
Account Opening ModeVisit nearest Branch
Quarterly Average BalanceRs. 0- Rs. 50,000 QAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr7% p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • Free NEFT/RTGS fund transfer.
  • Unlimited free transactions at own/other Bank ATM.
  • Enhanced Security with Zero Liability Coverage of Rs.50,000.

Disadvantage

  • Higher interest rate in on incremental balances.
  • Very limited number of branches across India.

Note : Best for people who are looking for high interest rate on saving account.

10. Yes Bank Saving Account

Headquartered in Mumbai,it has a pan-India presence across all 28 states and 9 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi. It offers wide range of banking and financial products for corporate and retail customers through retail banking and asset management services.

Bank pays high interest rate of 6% for account balance > 10 Lac and up to 300 crores; 5% for account balance > 1 Lac and up to 10 Lac and 4% for account balance below 1 Lac.

High-interest saving account details are as below

Interest Rates Details4% – 6% p.a
Account Opening Modeonline via website
Monthly Average BalanceRs. 0- Rs. 10,000 MAB
FacilitiesOnline ,Phone ,Branch and ATM Banking
FD Rate => 1 yr and <= 2 yr6.75% p.a
copyright 2020 @makecashworks.com

Advantages

  • Higher interest rates.
  • Lifetime free visa Virtual Debit Card.
  • Free NEFT/RTGS and UPI.
  • INR 16000+ worth offers on on boarding and activation.
  • Lost card liability of INR 50,000 ; Purchase protection of INR 25,000 ; Personal Accident cover of INR 2 Lac.

Disadvantage

  • Higher interest rate in on incremental balances.
  • Bank recently came out of corporate governance issue and SBI took over.

Note : Best for people who are looking for high interest rate on saving account.

Disclaimer: MAB*: Monthly Average Balance, AMB**: Average Monthly Balance, AQB***: Average Quarterly Balance, MB****: Minimum Balance. FD Data/Interest rate data as on respective banks’ website on Nov 11, 2020. 

With the advent of digital technologies,most of the bank are offering facility of online account creation. You can open up your saving account without even visiting the branch. High interest account is great way for managing you emergency fund without taking undue risk and maintain the liquidity in case of emergencies.

checkout : 10 ways to save money in your day-to-day life.

Anyone planning to open up account with all the above banks are encouraged to checkout the fine print about minimum balance requirements and income requirement. They should also checkout the other facilities offered by bank like number of ATM,branch network , service record and online banking facility ,customer care and track record of bank before opening up the account. Bank Deposits are only insured up to 5 Lac by DICGC per bank per customer , its better to keep only 5 Lac as a added layer of security when going with smaller banks.

To recap out recommendations..

Best High Interest Saving Account in November 2020

Frequently Asked Questions

Q. What is a high-interest saving account?

High-interest saving accounts are the type of accounts which pays higher interest rate on money kept compared to traditional saving account. These are generally offered by newer banks,institutions for which borrowing money from market is quite expensive and sometime its also act as enticing offer to grow the customer base.

Q. Is my money safe in the new banks saving accounts?

In short, Yes. Any kind of deposit in banks in India is insured up to 5 Lac per Bank per customer by DICGC . This means that if a bank goes out of business, your money is safe up to insured amount.

Q. When can I withdraw my money from the account?

These are the high-interest paying savings account, typically there is no limitation on when can you withdraw money unlike fixed deposits. You can withdraw your money whenever you want.

Q. Can I open a high-interest saving account jointly with my family member?

Yes, High-interest saving account can be opened jointly by two or more persons.

Q. When will the interest amount gets credited to my high-interest saving account?

Banks typically credit interest earned on the amount in your saving account on quarterly basis.

Q. Do we need to file taxes on the interest income earned on high-interest saving accounts in India?

Income earned from saving account interest is eligible for deduction under 80TTA up to Rs.10,000 from all saving accounts held in post offices, banks or co-operative banks. If you are earning more interest income,it is taxable.

Q. Can a single person hold multiple high-interest savings accounts in India?

There is legally no limits on how many savings accounts a person can hold in India. It

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

<span>%d</span> bloggers like this: