Most of us feel that our capital is secure in public-run banks even after the success of private-run banks, while deposits at even private banks are secured to the amount of Rs. 5 lakh. However, when it falls to a savings account, in a PSB, you may be happier choosing for that too, because of some benefit more than large private banks. However, there is a situation in which private banks and small finance banks offer a better return on savings account in order to draw a wider customer base. Even for the working people, though there may or may not be an option to select a bank account as the employer manages the accounts of his employee in a particular bank, most individuals (self-employed) have a choice in the decisions and may select to have their own bank savings account.
Now, although this savings account is really relevant and can be considered as a medium to create a significant backup or emergency portfolio overtime for you and thus the interest rate consideration is equally important to gain a decent return. And if your convenience range remains with banks in the public sector and you have a preference, some of the PSBs give savings account returns equal to or even higher than the leading public sector banks across the country. Interestingly, some prominent and popular private sector banks pay identical interest rates ranging from 3.00% to 3.50% on savings account per fiscal year. Thus, if you have the preference, at these public-owned banks you can accept savings bank accounts, and yet here for additional security, you may have to relinquish higher returns, such as IDFC First Bank on savings account with over Rs. 1 lakh balance payout 7 per cent return annually. Another consideration that is helpful for you to manage a savings account with these banks is that when it relates to minimum balance amount conditions, there is a comparatively lower standard (amount wise).
Interest rates of top 5 Public Sector Banks on savings account
- IDBI Bank – 3.1% (for balance up to Rs. 25 lakh) 3.6% (for balance over Rs. 25 lakh)
- Punjab and Sind Bank – 3.1% for balance up to Rs. 20 lakhs and 3.5% for balance above Rs. 20 lakh
- Indian Overseas Bank – 3.1%
- Bank of India – 3%
- Union Bank – 3%