Tips to Choose Perfect Savings Account
By Team CodeForBanks | April 29, 2025
When it comes to choosing from an array of savings accounts' options, it becomes imperative that one makes a well-researched choice. Searching for suitable savings account may seem an arduous task as it is hard to pick an account by just looking at the account features. Hence, it is better to compare the savings account options against diverse parameters. This will help maximize your earnings and earn better rewards.
How to Choose the Best Savings Account?
Here we've listed some of the most important parameters to help you in making the right choice:
Savings Account Interest Rate
The interest rate offered by most banks starts from 2.70% on savings bank accounts. But there are a number of banks that offer a higher interest rate up to 7.50%, given the fact that you ensure maintaining a specific balance in the savings account.
Minimum Balance Requirement
As mentioned, there are some banks which need you to maintain a minimum balance in your savings account. And if you fail to maintain the minimum account balance, you'll have to pay a penalty. So, you should check what suits you the best. You can then either choose a savings account with a minimum balance, or decide to go with a zero-balance savings account.
Low Account Maintenance Charges
Daily operations, now a days, apply a number of fees and charges on a savings account such as ATM withdrawal fees, ATM card annual fees, fund transfer charges, chequebook issuance charges, statement issuance charges, etc. Choose an account that comes with an optimum balance of services compared to the cost of availing them.
Additional Features
How would it be if you get further more features from the same savings account? There are banks offering a number of facilities with a savings account and they are additional benefits for you to enjoy with the available ones. These include net and mobile banking, free cheque book, doorstep cash deposit/withdrawal, etc. Such facilities are more suitable as they let one complete bank transactions without visiting the bank, that is, from the comfort of your home or office.
Hence, do not forget to check for the facilities attached to the savings account before making a choice.
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Debit Cards Features
Many banks also provide debit cards that come with benefits like discounts on purchases, no-cost or low-cost EMIs, joining benefits, travel benefits, complimentary movie tickets, etc. If you find these features interesting as well as matching your lifestyle, you can go ahead choosing an account that can provide you with such offers and deals.
Banks with their Savings Account Interest Rates
Here's a table showing banks providing some of the best interest rates. Note that the values may vary based on the type of savings account.
Here you go:
| Bank | Interest Rates (%) | Minimum Account Balance | Bank's Unique Features |
|---|---|---|---|
| HDFC Bank | 2.75% – 3.25% | Rs.2500 to Rs.10,000 | One of the largest and most popular private banks in India. |
| Strong digital presence with a wide range of banking products. | |||
| ICICI Bank | 2.75% – 3.25% | Rs.5000 to Rs. 10,000 | An Indian multinational financial services bank, it outperformed on profitability. Has a strong net interest income. |
| Kotak Mahindra Bank | 2.75% – 3.25% | Rs.10,000 to Rs.50,000 | A leading private sector bank in India, |
| Focuses on digital channels. Offers a wide range of financial products. | |||
| Yes Bank | 3.00% – 5.00% | - | Rewards programs, convenient digital banking options, and various account types with distinct benefits. |
| Axis Bank | 2.75% – 3.25% | Rs.2500 to Rs.12,000 | Offers a range of banking services, such as traditional and digital channels. |
| Known for its branch network and customer service. | |||
| Bank of Baroda | 2.75% – 4.50% | - | A public sector bank, has a strong presence across India. Offers a wide variety of banking products and services, including digital channels. |
| AU Small Finance Bank | 3.00% – 7.00% | Rs.5000 to Rs. 10,000 | Popular for its strong focus on rural as well as small-scale businesses. |
| Jana Small Finance Bank | 2.50% – 7.55% | - | Offers financial inclusion services while also focusing on underserved communities. |
| Ujjivan Small Finance Bank | 3.00% – 7.50% | - | Strong in microfinance as well as rural banking. |
| Equitas Small Finance Bank | 3.00% – 7.80% | - | A small finance bank, focuses on serving the underserved. |
| Provides financial products and services, such as loans, savings accounts, and credit cards. |
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