A savings bank account allows you to maximise your hard-earned money while also earning a consistent interest rate on the balance you keep along with withdrawal flexibility.
Today, banks provide a variety of savings bank accounts to meet the demands and financial habits of a wide range of customers. A standard savings account, a salary account, a senior citizen savings account, a zero balance savings account, and so on are all examples of savings accounts on offer.
The interest rate also varies depending on the account, amount, and bank. Here is a quick comparison of the interest rates of foreign banks with private banks, let us see who is offering better returns.
Foreign banks savings account interest rate
| Foreign Banks | Interest rate |
| DBS Bank India | 3.25% for balance up to Rs 1 lakh |
| 3.5% for balances over and above Rs 1 lakh and up to Rs 2 lakhs on the incremental amount* | |
| 4% for balances over and above Rs 2 lakhs and up to Rs 5 lakhs on the incremental amount* | |
| 3% for balances over and above Rs 5 lakhs and up to Rs 5 Cr on the incremental amount* | |
| 3.75% for balances over and above Rs 5 Cr will get on the incremental amount thereon | |
| HSBC | 2% for balance up to Rs 10 crore |
| 2.50% for over Rs 10 crore | |
| Standard Chartered | 2.75 for balance up to Rs 50 lakh |
| 3.25% for balance above Rs. 50 lakhs to Up to Rs 40 crores | |
| 0.50% for balances above Rs 40 crores | |
Interest is calculated daily and paid quarterly, according to the Citibank website. On a quarterly basis, HSBC pays interest on savings accounts. For standard Chartered customers, interest will be calculated at the applicable Savings Bank Interest Rate on the daily available balance and paid quarterly. According to DBS Bank website, “Interest will be paid at quarterly rests or on any other rests as the Bank may decide from time to time.Interest will be calculated on daily available balance or as required by the regulator or as a result of banks own decision.”
Private banks savings account interest rate
| Private banks | Interest rate |
| HDFC Bank | 3.00% for balance less than Rs 50 lakh |
| 3.50% for above Rs 50 lakh to less than Rs 1000 Cr | |
| 4.50% for balance above Rs 1000 Cr | |
| ICICI Bank | 3.00% for end of day balance below Rs 50 lakhs |
| 3.50% for end of day balance of Rs 50 lakhs and above | |
| Axis Bank | 3.00% p.a. for balance less than Rs 50 lakh |
| 3.50% p.a for balance above Rs 50 lakh and up to less than Rs 10 Cr | |
Source: Bank websites
The interest earned is credited to savings account on a monthly or quarterly basis, depending on the rules of the relevant bank. According to HDFC Bank website, “Savings Bank interest will be calculated on the daily balances maintained in your account. Savings Bank interest will be paid at quarterly intervals.”
As per ICICI bank website, “Savings Bank Account interest is calculated on a daily basis on the daily closing balance in the Account, at the rate specified by ICICI Bank in accordance with Reserve Bank of India directives. The interest amount calculated is rounded off to the nearest rupee.”
According to Axis bank website, “The interest rate is calculated on the balance maintained in the Savings Account on a daily basis, but it is credited to the account on a quarterly basis (on the first day of the next quarter with the exception of the fourth quarter where the interest amount is paid on the last day of the quarter).”
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
A savings bank account allows you to maximise your hard-earned money while also earning a consistent interest rate on the balance you keep along with withdrawal flexibility.Today, banks provide a variety of savings bank accounts to meet the demands and financial habits of a wide range of customers. A standard savings account, a salary account, a senior citizen savings account, a zero balance savings account, and so on are all examples of savings accounts on offer.The interest rate also varies depending on the account, amount, and bank. Here is a quick comparison of the interest rates of foreign banks with private banks, let us see who is offering better returns. Foreign banks savings account interest rate Foreign BanksInterest rateDBS Bank India3.25% for balance up to Rs 1 lakh3.5% for balances over and above Rs 1 lakh and up to Rs 2 lakhs on the incremental amount*4% for balances over and above Rs 2 lakhs and up to Rs 5 lakhs on the incremental amount*3% for balances over and above Rs 5 lakhs and up to Rs 5 Cr on the incremental amount*3.75% for balances over and above Rs 5 Cr will get on the incremental amount thereonHSBC2% for balance up to Rs 10 crore2.50% for over Rs 10 croreStandard Chartered2.75 for balance up to Rs 50 lakh3.25% for balance above Rs. 50 lakhs to Up to Rs 40 crores0.50% for balances above Rs 40 crores Interest is calculated daily and paid quarterly, according to the Citibank website. On a quarterly basis, HSBC pays interest on savings accounts. For standard Chartered customers, interest will be calculated at the applicable Savings Bank Interest Rate on the daily available balance and paid quarterly. According to DBS Bank website, “Interest will be paid at quarterly rests or on any other rests as the Bank may decide from time to time.Interest will be calculated on daily available balance or as required by the regulator or as a result of banks own decision.”Private banks savings account interest rate Private banksInterest rateHDFC Bank3.00% for balance less than Rs 50 lakh3.50% for above Rs 50 lakh to less than Rs 1000 Cr 4.50% for balance above Rs 1000 CrICICI Bank3.00% for end of day balance below Rs 50 lakhs3.50% for end of day balance of Rs 50 lakhs and aboveAxis Bank3.00% p.a. for balance less than Rs 50 lakh3.50% p.a for balance above Rs 50 lakh and up to less than Rs 10 Cr Source: Bank websitesThe interest earned is credited to savings account on a monthly or quarterly basis, depending on the rules of the relevant bank. According to HDFC Bank website, “Savings Bank interest will be calculated on the daily balances maintained in your account. Savings Bank interest will be paid at quarterly intervals.”As per ICICI bank website, “Savings Bank Account interest is calculated on a daily basis on the daily closing balance in the Account, at the rate specified by ICICI Bank in accordance with Reserve Bank of India directives. The interest amount calculated is rounded off to the nearest rupee.”According to Axis bank website, “The interest rate is calculated on the balance maintained in the Savings Account on a daily basis, but it is credited to the account on a quarterly basis (on the first day of the next quarter with the exception of the fourth quarter where the interest amount is paid on the last day of the quarter).”(Your legal guide on estate planning, inheritance, will and more.) Download The Economic Times News App to get Daily Market Updates & Live Business News.