Banks With Highest Interest Rate

10 Banks with Highest Interest Rates in India

Bangalore: In December 2012, Competition Commission of India decided to take a look at the banking sector of India. Most of the public sector banks offer common 4 percent interest rates even though the Reserve Bank of India moved to an unregulated regime in October 2011. For banks, current accounts (CA) and savings accounts (SA) are the steadiest and cheapest source of funds. Banks usually target at least 30 percent of their total deposits from CA and SA. While maximum of the Indian population choose to keep their money in the savings account (SA), read on to know few popular banks with their current savings accounts interest rates on yearly basis.

1. Yes Bank
Savings Account Interest Rate: 6 percent

Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with the duo holding a collective financial stake of 27.16 percent. The bank provides a higher return of 7 percent p.a. on Savings Account for balance more than 1 lakh & 6 percent p.a. for balance up to 1 lakh.

YES BANK has received significant national and international recognitions which include Dr. Rana Kapoor, Founder, MD & CEO being recognized as the Entrepreneurial Banker of the Decade 2001-2010 by Bombay Management Association and was also Business Standard Banker of the Year 2011.

2. Kotak Mahindra
Savings Account Interest Rate: 6 percent

Kotak Mahindra is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company. From 1st November, 2011, the bank offers 6.0 percent interest p.a. on Savings Account balance over 1.lakh and 5.5 percent p.a. on balance up to 1 lakh. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).

3. IndusInd Bank
Savings Account Interest Rate: 5.50 percent

IndusInd Bank offers 5.5 per cent for below1 lakh and 6 per cent above 1 lakh savings account deposits. . Indusind Bank is the first among the new-generation private banks in India. IndusInd Bank Limited is a Mumbai based India new generation bank, established in 1994. The bank offers commercial, transactional and electronic banking products and services. Indusind Bank was incorporated in April 1994 by Dr. Manmohan Singh the then Union Finance Minister.

4. Citibank
Savings Account Interest Rate: 7.25 percent

Citibank provides 7.25 percent interest on amount below 15 Lakhs kept for tenure of 271 to 364 days. The average monthly relationship value requirement for this account is 2 Lakhs, which includes balances across savings, term deposits, investments, insurance, outstanding principal on home loan and Citibank Demat Account. But it is important to keep in mind that interest rates are subject to change. Citibank, one of the major international banks, is the consumer banking arm of financial services giant Citigroup.

5. State Bank of India
Savings Account Interest Rate: 4.00 percent p.a.

State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra. As at December 2012, it had assets of $501 billion and 15,003 branches, including 157 foreign offices making it the largest banking and financial services company in India by assets. SBI provides 4.00 percent interest rate per annum on its savings account.

6. ICICI Bank
Savings Account Interest Rate: 4.00 percent p.a.

ICICI Bank provides 4.00 percent interest per annum on its savings account with a minimum balance of 10, 000 for metro and urban cities, 5, 000 for semi urban and 2, 000 for rural areas.

ICICI Bank Limited is an Id financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It also offers a wide range of banking products and financial services to corporate and retail customers. The Bank has a network of 2,883 branches and 10021 ATM's in India, and has a presence in 19 countries, including India.

7. Axis Bank
Savings Account Interest Rate: 4.00 percent p.a.

Axis bank provides 4.00 percent interest per annum and the customers can avail the services with a minimum quarterly average balance of 10, 000 in metro or urban centers, 5, 000 in semi urban centers and 2, 500 in rural centers.

As on the year ended 31 March 2012, Axis Bank had operating revenue of 134.37 billion and a net profit of 42.42 billion. Axis Bank opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993. The Bank, as on 31 March 2012, is capitalized to the extent of 4.132 billion with the public holding at 54.08 percent.

8. HDFC Bank
Savings Account Interest Rate: 4.00 percent p.a.

For the fiscal year 2011-12, the bank has reported net profit of 5, 167.07 crore i.e. $940.41 million, which is higher by 31.6 percent from the previous fiscal. The interest on a savings account is paid at 4.00 percent p.a. on a daily end of day balance, w.e.f. May 3, 2011.

HDFC Bank is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of November 1, 2012.

9. Punjab National Bank
Savings Account Interest Rate: 4.00 percent p.a.

The savings account interest rate provided by Punjab national bank is 4.00 percent per annum. Customers having domestic term deposits less than 1 crore for a period of 1 year will be provided 9.00 percent interest rate. The bank's total assets for financial year 2007 was, about $60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.

10. IDBI Bank
Savings Account Interest Rate: 4.00 percent p.a.

The interest on a savings account is paid at 4.00 percent p.a. on a daily end of day balance, w.e.f. May 3, 2011. IDBI Bank is owned by the Indian Government and is on a par with nationalized banks and the SBI Group as far as government ownership is concerned. It is one among the 26 commercial banks owned by the Government of India. The Bank has an aggregate balance sheet size of 2908.37 billion as on 31 March 2012.

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