High Yeilding Savings A/C in India

Let’s say you are a salaried employee with 1,00,001.00 rupees balance in your Savings Account. If your account is with ICICI/SBI/Axis/etc. you could be earning 3000.00 less interest than your friend who is having savings account with Yes Bank. Why is that? Because Yes Bank pays 7% interest on your savings while well-established banks like ICICI/Axis/SBI pays 4%(these rates as I write and they change quite often).

Prior to 24-Oct-2011 interest rates on Savings Account was regulated by RBI and it was at 4% per annum. However with effect from 25-Oct-2011 RBI allowed the banks to decide the interest rate which they want to pay to their customers. With this freedom, banks are now competing with each other to attract customers who need savings accounts. This is a very good thing for customers as they are getting better interest rates.

So to help you find a bank who pays highest interest rates, here is chart to quickly identify them.

Sl. No Bank Name Interest Rate Account Balance
1 Yes Bank 7.00% p.a More than Rs. 1 Lakh
2 Ratnakar Bank 6.10% p.a More than Rs. 1 Lakh
3 Indus India Bank 6.00% p.a More than Rs. 1 Lakh
4 Kotak Mahindra 6.00% p.a More than Rs. 1 Lakh
5 Yes Bank 6.00% p.a Less than Rs. 1 Lakh
6 Indus India Bank 5.50% p.a Less than Rs. 1 Lakh
7 Ratnakar Bank 5.50% p.a Less than Rs. 1 Lakh
8 Kotak Mahindra 5.50% p.a Less than Rs. 1 Lakh
9 ICICI Bank 4.00% p.a Less than Rs. 1 Lakh
10 ICICI Bank 4.00% p.a More than Rs. 1 Lakh
11 Axis Bank 4.00% p.a Less than Rs. 1 Lakh
12 Axis Bank 4.00% p.a More than Rs. 1 Lakh