10 Best Banks for Opening a Savings Bank Account in India

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    YES Bank

    YES Bank founded in 2004 slowly grew into one of the largest banks in the country. In the past few years, it is considered as one of the fastest growing banks in India. It offers a wide range of savings bank account schemes to both individuals and corporations. It offers all types of digital payment solutions to its customers. Yes Bank after the revision of Savings Bank interest rates last year, it now offers a reduced interest rate of 5% per annum for saving deposits of up to Rs. 1 lakh. If the deposit balance is between Rs. 1 lakh and Rs. 1 crore, it offers an interest rate of 6% per annum. For account holders with the saving deposits balance of over Rs.1 crore receive an interest rate of 6.25%. Just like Kotak Mahindra Bank, Yes Bank offers a multitude of benefits to its customers.

    Savings Account holders at Yes Bank enjoy free NEFT payment facility, debit cards with attractive offers, access to ATMs across the country, receive quarterly savings interest payout, free demand draft issuance, easy payment of utility bills, personal account number selection, SMS banking facility, and others. Appling for a YES Bank savings account can be done easily online. It is a three-step process wherein the first step they have to fill the Savings Account Eligibility form. Once this form is filled and submitted, the bank presents a list of suitable account options. In the second step, an applicant can go through the various account types and compare them. The last step involves choosing a specific savings bank account type and clicking on its approval. Users through email and SMS alerts can know the status of their application.

    YES Bank has three categories of savings bank accounts including personal, salary and custom. The personal savings accounts are for individuals and it is of 4 types, Savings Exclusive, Savings Value, Savings Select, and Savings Advantage. The benefits such as doorstep services, unlimited ATM access, free demand draft issues, free silver debit card, low minimum balance and sweep in the facility are distributed across these accounts.  In the salary savings accounts, YES Bank offers Smart Salary Platinum, Smart Salary Advantage, and Smart salary Exclusive.

    Kotak Mahindra Bank

    Kotak Mahindra Bank is one of the most preferred banks for opening savings bank accounts because of its high-interest rates and bank’s widespread network of branches and ATMs across the country. Unlike RBL and YES Bank that offer similar high-interest rates but have a lesser reach in the rural areas, Kotak Mahindra Bank is active in both Rural and Urban areas. Kotak Mahindra Bank offers 12 different savings bank account schemes (formerly there were 13, Jifi Saver is currently discontinued) including Sanman, Platina, Grand, Ace, Edge, Pro, Nova, Classic, Silk, Junior, Alpha, and My family. It offers a 5% of the annual interest rate on saving deposits of up to Rs.1 lakh. For users who have a saving deposits balance between Rs. 1 Lakh and Rs. 1 core get an annual interest rate of 6% and a 5.5% of annual interest rate is given for accounts with above Rs. 1 crore and Rs. 5 core. It is one of the very few banks to offer no-cost withdrawal of money from any Kotak Mahindra ATM. Only when the debit card transaction is declined due to insufficient balance, a fee of Rs. 25 is charged.

    Depending on the point of sale calculated on the Kotak debit card, account holders can get a cashback of up to Rs.4500 per annum. All the savings banks account at Kotak Mahindra are given free phone banking services, Net Banking, and SMS banking alerts. The minimum average quarterly balance for savings account holders varies from Rs. 2,000 to Rs. 1 lakh. Kotak Mahindra Bank uniquely offers Kotak Alpha Savings account for a nominal monthly premium of Rs. 300 that offers a life cover of Rs.20 lakhs. It is a savings account scheme that combines the benefit of investment and insurance through mutual funds. This saving account scheme can be availed by individuals between the ages 19 and 54 years. In addition to coverage benefits, account holders can enjoy cash backs up to Rs. 4500 on debit card transactions.

    The Ace and Pro account holders get the privilege of unlimited ATM usage.  Also, 15% rebate on locker fee is offered for Ace, Silk Savings and Grand Savings Accounts. Now people can easily open Zero minimum balance savings accounts online at Kotak Mahindra Bank’s official website. The account holders get access to various banking solutions such as NEFT, debit card with online transaction facility, checkbook on demand, and mobile banking by opening a savings bank account Kotak Bank.

    ICICI Bank

    ICICI or Industrial Credit and Investment Corporation of India started in 1994 is a huge multinational banking institution with extensive branch and ATM network across India. It offers personalized banking services to its customers by providing various types of accounts. Opening a savings bank account in ICICI provides robust security, easy access and reasonable returns on investment for the money.  ICIC bank pays a lower interest rate of 4% to its all savings bank account holders. It, however, offers some interesting benefits to it customers such as giving customers the choice of selecting their savings bank account number and discounts at major hospitals, Apollo pharmacies, and clinics. Like other banks, it offers multiple savings account variants but the conditions, charges, and other requirements are not so flexible compared to Kotak Mahindra Bank. It does offer zero balance facility in the basic savings account type, however, the minimum balance on the other types could range from Rs.2,500 to Rs. 1,25,000. All types of savings accounts are offered phone and internet banking.

    ICICI has a large network of ATMs across the country in both urban and semi-urban areas. ICICI offers customized savings accounts including Gold Privilege Savings account, Titanium Privilege Savings Account, Regular Savings Account, Basic Savings Bank Account, Senior Citizens Savings Account, Silver Savings account, Gold Savings account, Pockets Savings Account, Young Stars Account and Advantage Woman Savings Account. Among these basic savings account does not require one to maintain a monthly minimum balance. Depending on the type of savings accounts, account holders incur fees and charges for SMS alerts, Debit Card Fees, and ATM Interchange Cost.

    The account types such as Silver, Savings, Freedom, Easy Receive, and Basic Savings have annual debit card fees of Rs. 150 and Rs. 15 for SMS alerts. ATM Interchange Cost of Rs. 20 is charged on ATM transactions done after 4 free transactions. ICICI Bank offers Money2World, which is an easy global money transfer service to its savings account holders. Using this service, one can transfer and receive money from anywhere around the world in 16 different currencies. ICICI is one of the first banks to provide EMI feature to savings account debit cardholders.

    Axis Bank

    Axis Bank offers different types of savings accounts to its customers with attractive benefits and personalized services. With a savings account at Axis bank, customers can track and plan their finances to make considerable savings and earn interests. Currently, Axis bank has 2300 Axis bank branches and 11,500 ATMs across the country. Axis bank is quite flexible on the minimum balance requirements. The downside of having a savings bank account in Axis bank is, it offers lesser interest rate. The saving deposits of less than Rs. 50 lakhs, receive 3.5% of annual interest rate and for Rs. 50 lakhs and above a flat interest rate of 4%  per annum is given. It provides 15 different types of savings bank accounts namely EasyAccess, Prime Savings Account, Future Stars, Prime Plus, Women’s Savings Account, Senior Privilege, Pension Savings account, Trust/NGO Savings Account, Insurance Agent Account, YOUth Account, Basic Savings Account, Small Basic Savings Account and Krishi Savings Account.

    To open an Axis Bank Saving account, customers can then either visit their nearest branch or apply online through Axis bank web portal. To open an account, users have to submit an application form with personal details such as address, name, phone numbers, the city of residence, preferred brank and others. For verification adding mandatory documents is necessary. The minimum account balance on different savings accounts in Axis bank varies from Rs. 2500 up to Rs. 1,00,000. The new account holders of Axis bank as a part of the initiation program receive a welcome kit. There is no need to apply for a debit card if you are an Axis bank savings account holder, it is offered at the time of opening an account. The savings account charges in the Axis bank are quite high compared to banks like Kotak Mahindra, which offers better savings bank facilities in many respects.

    Axis bank charges its account holders from Rs.150 to Rs.500 in the form of monthly Account service fees, Debit Card Issuance fees, and Account Closure fees. All the savings account schemes are charged Rs. 500 on account closure. The savings accounts at the lowest tier such as Basic savings account, Small Basic Savings Account, and Youth Account does not the incur neither debit card issuance nor Account Service fees.

    State Bank of India

    State Bank of India or SBI is a multinational banking and financial institution owned by the government of India. With a savings account opened at SBI you can have access to largest branch and ATM network in India. State Bank of India last year in the month of July reduced its Savings Bank account interest rates from 4% to 3.5%. It currently pays 3.5% of interest rate per annum for saving deposits if less than Rs. 1 core and for over Rs.1 crore, it offers an interest rate of 4% per annum. SBI offers five types of savings bank accounts, which is less than banks like Kotak Mahindra and Axis bank.

    The savings bank account types that SBI offers are Savings Plus, Yuva Savings, Small Savings, Basic Savings, and Savings Account For Minors. Depending on the type of savings bank account, account holders get any of the 3 debit cards offered by SBI including Basic ATM Debit card, ATM-cum-Debit Card, and Photo ATM-cum-Debit card. With an account at SBI, users can receive all the typical bank account holder benefits such as Passbook facility, Internet banking, Mobile banking,  Nomination facility, Safe deposit lockers,  relocation of SBI account with zero cost, Multicity cheques, and linking with Multi Option Deposit account.

    SBI account holders incur non-maintenance of minimum balance charges, which range from Rs. 25 to 100 depending on the area of living and shortfall. The popular Basic Savings account with SBI is quite similar the Kotak bank’s 811 savings account but the interest rate offered is lower with respect to SBI. The intention or design of Basic savings account is based on providing access to banking facilities for everyone. People already having an account at SBI cannot open a basic savings account. If opened the previous account has to be closed within 30 days. The key benefits of basic savings account are no minimum balance requirement, free first basic debit card, and no deposit fee. Individuals can now apply for opening an SBI savings account online through the bank’s official website.

    Punjab National Bank

    Punjab National Bank promises to offer safe savings and easy access to banking facilities. The key advantage of having a PNB savings account is it has several ATMs across India, which enables its account holders to have access to their money with convenience. Punjab National Bank offers different types of savings bank accounts for people from various financial backgrounds. Like many of the other public sector banks, Punjab national bank offers an interest rate of 3.5% per annum for Saving Deposits below Rs. 50 Lakhs and 4% per annum for Saving Deposits of Rs. 50 lakh and above.

    Currently Punjab National bank offers 9 different types of savings bank accounts namely, Saving Deposit- General Account, Family Suraksha Bachat Khata, PNB Premium Saving Account, PNB Junior SF account, PNB Prudent Sweep, PNB Vidyarthi SF account, Total Freedom Salary Account, Basic Savings Bank Deposit Account, and High end Salary Account. PNB offers separate scheme based bank accounts for institutions and individuals as per the consensus of RBI. These account types include PNB Rakshak Scheme, PNB SF Prudent Sweep, PNB Shikshak Sweep Scheme, PNB Power Savings, and PNB Pension Savings. The minimum account balance in PNB varies depending on the type of savings bank account. For General accounts, based on the area of living, rural, semi-urban, urban or metropolitan, the minimum balance could be either Rs. 500 or Rs.1000. For people living in the rural areas. Rs. 500 is the minimum balance requirement and for the rest it is Rs. 1000.

    On Premium Savings Accounts, the minimum quarterly average balance is Rs. 50,000. For Total Freedom Salary account, Vidyarathi SF account, Basic Savings Bank Deposit account, and Junior SF account, PNB expects to have no minimum balance. To open a savings account in PNB you need to provide proof of identification issued by Government of India, which can be Passport, PAN, Aadhar, drivers license or Voter ID.  In addition, you have to submit proof of residence, duly filled bank account form, passport sized photographs, and other institutional documents if you are opening an account for Clubs, HUF, Society, Trust or others.

    IndusInd Bank

    Induslnd Bank is one of the key private sector banks in India. It provides different types of savings bank account schemes to people based on their personal finance. It offers a wide range of benefits and privileges similar to other banks such as Phone Banking, Net Banking, IVR support, and Mobile Banking. Today Induslnd Bank has over 600 branches across India and 1200 ATMs that spread across mainly in the urban area. It promises to offer easy access to withdrawal and deposit of money to savings bank account. To get a savings bank account in Induslnd Bank a person can either visit the nearest branch, fill in the application form, provide documents of proof of identity or Apply online. To apply online, users have to fill in the savings account eligibility form, which mainly asks for personal bio data. Once these details are offered, the web portal presents various savings bank account options for the applicant side by side. This allows the applicant to compare between savings account options and apply for the best and suitable scheme. In the last step, you will receive an e-approval confirming the opening of your savings bank account.

    The interest rates offered by Induslnd bank for its savings bank account holders are average compared to Kotak Mahindra Bank. It offers an interest rate of 4% per annum for accounts with a daily balance of up to Rs. 1 Lakh. For users who maintain a daily balance of above Rs. 1 Lakh and below Rs. 10 Lakhs get one percent higher interest rate of 5% per annum. For users who have a daily balance of above Rs. 10 lakhs per annum receive the highest interest rate in this bank of 6% per annum.

    The different types of savings bank accounts offered at Induslnd Bank are Indus Exclusive, Indus Select, Indus Maxima, Indus Privilege, Indus Privilege Active, Indus Diva, Indus Senior, Indus Young Saver, Indus 3 in 1, Indus Classic, Indus Small, and Indus Easy. The minimum balance to be maintained in these savings bank accounts vary from zero to Rs.25,000. The Indus Maxima Savings Account needs an account holder to maintain an average quarterly balance of Rs.25,000. For indus Senior, Privilege and classic savings accounts it is Rs. 10,000.

    HDFC

    HDFC was one of the first banks in the private sector to receive approval from RBI to set up its operations in 1994. Today HDFC offers different savings bank account schemes to customers. It is known as its top end banking services and facilities. After the revision of interest rates last year, HDFC currently offers very average interest rates to its savings bank account holders. For saving deposits of up to Rs. 50 lakhs, an annum interest rate of 3.5% is offered. If the saving deposits amount is over Rs. 50 lakhs the slightly higher interest rate of 4% is offered.

    HDFC has 9 different types of savings back account schemes for its users namely SavingsMax account, Regular Savings account, Women’s Savings Account, Senior Citizens Account, Kids Advantage Account, Basic Savings Bank Deposit Account, Family Savings Group Account, BSBD Small Account and Institutional Savings Account. Among three types of savings account including Basic Savings Bank Deposit Account, BSBDA Small Account and Institutional Savings Account requires zero minimum balance. The minimum balance of the rest varies from Rs. 2500 to Rs. 40,000. Depending on the type of area of living, urban, rural or semi-urban, the minimum balance can vary. For individuals and farmers who want a simple savings account and want the benefit of having zero minimum balance, can choose the basic savings bank deposit account. To create an account in HDFC bank, one has to submit ID proof, Photograph, Address proof and fill out the necessary forms. This can be done online or at your nearest bank branch. It is a three-step process where you have to submit the online form, the bank personnel will arrive at your doorstep to collect documents and you receive the account kit as a token of account opening in HDFC bank.

    HDFC has its separate portal called SmartBuy where savings bank account holders can compare prices to get the best shopping deals on products related to travel, food, Smartphones, Electronics, and beauty and health. Moreover, HDFC account holders enjoy the regular benefits that are coupled with saving bank accounts across all banks such as phone banking, mobile banking, Net banking, email account statements, and others. HDFC is known for its high tech ATMs across the country.

    RBL Bank

    RBL along with Kotak Mahindra Bank is one of the rapidly growing banks in India. It offers custom savings accounts with different schemes for everyone with different financial strata. Currently, RBL has a lower number of bank branches and ATMs in India. It has 351 ATMs and 183 branches spread across urban areas. As of January 2018, RBL bank is the highest savings bank interest provider. But unlike the Kotak Mahindra Bank, RBL calculates interest rates based on daily balance. If the daily balance of savings deposit is above 10 lakhs, 7.1% of annual interest rate is offered. For the savings deposit daily balance of above Rs. 1 Lakh, 6.1% per annum of interest rate is offered. And for savings bank deposit of up to Rs. 1 lakh, 5.1% of interest rate per year is offered.

    RBL gives varies benefits to its savings account holders. Like ICICI and HDFC bank, it offers individuals the flexibility to select a savings account number.  RBL provides 8 different types of savings accounts namely Advantage Savings Account, Basic Savings Account, Classic Savings Account, Prime Edge Savings Account, Executive Salary Account, Prime Savings Account and RBL Seniors First Savings Account. With Advantage savings account, account holders can avail a complimentary accidental death coverage of up to 5lakhs. The free platinum Visa Debit card provides customers with high cash withdrawal limits. The safe deposit lockers are offered at 15% discount. Moreover, savings bank account holders who have properties can easily get loans and 25% discount on the processing fees. The basic savings account is the entry-level savings account, which has no minimum monthly balance constraints. The minimum balance in RBL savings accounts among other types ranges from Rs.2500 to Rs.25, 000.

    There are different charges and fees applied to specific transactions with the bank. Fee rates for duplicate passbook issuance, replacement of debit card, Standing instruction failure, Demand draft charges, Paid cheque reports, Issuance of old cheque copy, Demand draft cancellation, and order of outstation cheque incurred a fee of Rs.50 each. For returned cheques, the bank charges Rs. 100 as fees. To apply for a bank savings account, an applicant should provide two passport sized photographs, valid ID proof, address proof and salaried employees have to provide bonafide authorization letters.

    Lakshmi Vilas Bank

    Lakshmi Vilas Bank was established in 1926 by VSN Ramalinga Chettiar with the purpose to serve farmers, industrialists and traders in the Karur region. Today it is one of the fastest growing banks in India and provides competitive interest rates for savings bank deposits along with Kotak Mahindra, RBL and others. It has over 400 branches and 800 ATMs located in various parts of India. This bank is widespread and concentrated mainly in the state of Tamil Nadu. Lakshmi Vilas bank has a long history of providing flexible savings accounts to people of all income standards. It currently offers 9 different types of savings bank account schemes including SB301, Lakshmi Prime Account, Lakshmi Titanium, BSBDA, Lakshmi Savings Gold, Savings Balance Free, Lakshmi Savings Star Gold, Manila Power, and Savings Youth Power.

    The minimum balance on the BSBDA and Savings Balance free is Zero. Among other savings bank account schemes, a minimum balance of Rs. 3000 up to Rs. 1 lakh is charged. With savings bank account in Lakshmi Vilas Bank, account holders depending on the scheme of their account can enjoy many benefits. These include unlimited withdrawals, Visa International debit card, Mobile banking, SMS alerts, NEFT and others.  SB 301 is the oldest and basic savings account scheme followed by Lakshmi Vilas Bank. One can have this account opened at the bank with a minimum deposit amount of Rs.500 in the rural areas and for Rs. 1000 in the urban areas.

    The account holders can enjoy an interest rate of 5% per annum under this scheme and free passbook facility. Like any other banking institutions requiring documentation including photographs and proof of residence, Lakshmi Vilas Bank asks for the same. The proof of residence could be a driving license, passport, voter’s ID or Identity card. A popular savings bank account that Lakshmi Vilas Bank offers is Lakshmi Savings Balance Free. This account is based on the idea of helping salaried individuals. Some of the useful benefits of this savings account are Zero minimum balance, unlimited cash withdrawals at the branch where the account was opened, free of charge cash remittance, and high daily ATM withdrawal limit of Rs.25,000.

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    114 COMMENTS

    1. The internet banking , Mobile banking n computer system is the worst in Axis Bank. The max messages we see is …”We are experiencing technical difficulties……. pl try after some time” . Branch service is the worst in most cases unless you have privilege or burgundy class account.
      Call centre service is a black spot on the name of bank. Same is the forex card services.

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