After the recent deregulation of savings bank account interest rates by RBI, at least three banks have hiked their interest rates.
Yes Bank was the first one to raise the interest rates on savings account with all balances to 6%, and this was followed by Indus Ind and Kotak bank announcing interest rates hikes on their savings accounts too.
I think other banks are going to follow suit soon, and I’m going to maintain a list of the best savings bank account interest rates on this page which will be updated periodically.
To start with, these are the three banks that have announced a hike in their interest rates.
|S.No.||Name||Under Rs. 1 lakh||Over Rs. 1 lakh|
|2||Indus Ind Bank||5.5%||6.0%|
*Yes Bank’s press release on their website.
**Karnataka Bank offers 5% for deposits over two lakhs.
Thanks to Hari for leaving comments and informing me about this.
Bemoneyaware caught the fact that the original RBI notification was being interpreted in at least two different ways – one was that all banks will have to pay the same interest rate on deposits of less than Rs. 1 lakh, and the other was that banks were free to decide the interest rates on deposits of less than a lakh as long as they don’t create slabs under that amount.
The fact that these banks have set up different rates for deposits of less than Rs. 1 lakh helps clarify that and show that there will be differential rates even for savings bank balances of less than a lakh. This is good because a large number of people will fall under this category.
Once again – thanks to Hari and Bemoneyaware for their timely and keen inputs.
Update: Thanks to Vivek for pointing out that Karnataka Bank has also raised their interest rates.