Savings account interest rate comparison: Foreign banks vs Private banks

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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).”



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