Which is best bank to open Savings account in India? What factors to consider?



  • There are so many private and public sector banks in India. It's not feasible to choose a lot of accounts. We need to select the right one meeting our requirements.
    Which is the best bank to open savings account in India? Here are few important factors to consider while making the best choice:

    • A Good Interest rate: High interest rate usually attracts. Banks provide 3-4% interest normally. It is based on the amount held in your savings account and varies as per account balance.

    • Minimum balance required to maintain the savings account: Low minimum balance requirement is also one of the deciding factors for a personal bank account.

    • Bulk of facilities offered by the bank: Although, most of banks provide somewhat similar benefits. But, few may have an edge over the others in terms of faster net banking and easy online access.

    • Customer service plays a big role: A helpful and quick responding customer support is what we look for while availing a banking service.

    • Easy access to bank branch: Online facilities have eased out the banking process. But, in case there is need to visit the the bank branch, it should be located within your reach.

    Do you know any other important factors to consider while selecting the best bank to open a savings account in India? Do share your experience and feedback on the same.



  • @harleen It's a nice one. Can you please elaborate a bit more on how the interest amount is calculated in savings account.

    Also, Is there no restricting body to decide the interest percentage as it varies from bank to bank. Is it not fixed for all banks like PPF percentage etc



  • @kvijay12345 Interest on savings bank account is calculated on daily basis as per the closing amount. But, interest is credited to the savings account on quarterly basis only.
    Monthly Interest= Daily balance*(No.of days)*Interest/(Days in the year)
    The normal rate of interest on savings bank account is 3-4% p.a. only these days. Few banks may provide a bit higher, that too if you have high balance in your savings account.



  • @harleen Keeping huge money in a savings bank doesn't seem to be a good idea. One should invest it somewhere else like PPF, mutual funds etc. to get better returns. The interest on savings bank account is too less. So, it anyways doesn't seem wise to keep big amounts in savings account. We should diversify it in other investment instruments.



  • @harleen Wile selecting the best savings bank account, one usually considers a high rate of interest. I feel presently DBS Bank and Kotak Mahindra Bank provide the highest interest rate. DBS Bank offers 6% p.a. and Kotak Mahindra Bank offers 5% p.a. interest. Rest banks provide somewhere between 3-4% p.a. interest only.



  • @ishu thanks for the reply



Disclaimer: Any views/recommendations expressed in the forum, of the individuals are their own only. Fintrakk doesn't endorse or recommend any financial product or views by the users of the forum. The information/comments on the forum should not be considered as a financial advise. Please do your own due diligence before investing. Fintrakk is not responsible for any financial loss to any of its visitor/user.