Savings account is a good option to earn modest returns. But that’s not all that makes a savings account a suitable option for those who have some extra money. Apart from offering nominal interest rates, savings accounts are also reliable, safe, secure and meet short-term needs. This investment platform is an ideal option for those who have regular income such as salaried employees.
Savings Accounts are the solution to small financial goals like planning a wedding, buying a vehicle, buying jewellery, or future vacations etc. One of the best features of these accounts is that the minimum balance requirement is low and the interest rate is fixed. Presently, the bank offers 3.5-6% interest rate on savings account.
The new financial year 2022-23 has arrived and there are two banks which have revised their savings account interest rate from 1st April. These two banks are RBL Bank and IDFC First Bank.
However, it needs to be noted that the interest rates in the banking sector are subject to change from time to time.
IDFC First Bank:
From today, Bank. Offers 4% rate on deposits up to 1 lakh on savings account. The rate is more than 4.5% on savings between less than or equal to lakh 10 lakh, and is offered on savings between 5% less than or equal to 10 lakhs 25 lakhs. 4.5% is also offered on above savings less than or equal to 100 crores 200 crores, while 5% is also given on the above less than or equal to 1 crore 100 crores.
Here the highest interest rate offered on savings accounts is 6% on above deposits less than or equal to 25 lakhs 1 crore, while the minimum rate is 3.5% and is given on savings of above 200 crores.
Here’s how your savings account interest rates are calculated:
The Bank clarifies that interest will be calculated on the progressive balance as applicable in each interest rate slab.
IDFC First Bank explains with the following examples:
1. If you have an account balance with IDFC First 25,000, the interest payable to you in the aggregate will be 4% 25,000.
2. If you have a bank account balance 5 lakh, the interest payable to you will be 4% 1 lakh and at 4.5% 4 million.
3. If you have a bank account balance 1.10 crore, the interest payable to you will be 4% 1 lakh, at 4.5% 9 lakh, at 5% 15 lakh, at 6% 75 lakhs and at 5% 10 lakhs.
4. If we have balance in your account 5.3 crores, the interest payable to you will be 4% 1 lakh, at 4.5% 9 lakh, at 5% 15 lakh, at 6% 75 lakhs, and at 5% 4.3 crores.
RBL Bank:
RBL Bank has reduced its savings account interest rate by 25 basis points to 1% on various savings balances.
Bank offers 4.25% rate on savings from 1st April 1 lakh, and above 5.5% from 1 lakh 10 lakhs. These rates remained unchanged. However, the bank offers a rate of 6% on each of the above savings from 10 lakhs 3 crore and above from 3 crores 5 crore as compared to the previous 6.25% each.
5.75% rate offered on above savings 5 crore to 10 crore against the previous 6%, while the corresponding 5.75% rate was kept unchanged on the above savings from 10 crores 50 crores. The rates on the above savings were also kept unchanged at 5.25%, 5% and 4%. from 50 crores 100 crores; above 100 crore 250 crores; and above 300 million.
The biggest cut of 1% was made in the savings above 250 crores 300 crores, where the interest rate is now 4% from the previous 5%.
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