Banks offer different types of savings accounts depending on the requirements and features. The interest rate on savings accounts is calculated on the basis of daily closing balance. Let’s know about it in detail.
Interest is credited to your account monthly or quarterly depending on the bank rules. The interest rate on savings account depends on the bank. Note that unlike FD, savings account will not offer any higher interest rate to senior citizens.
Interest rates on savings accounts differ from bank to bank. Here is the comparison of new savings account interest rates as per the websites of SBI, ICICI Bank, HDFC Bank, PNB, Canara Bank.
State Bank of India Savings Account Interest Rate
The interest rate is 2.70 per cent for savings accounts with balance up to Rs 10 crore and 3 per cent for balance above Rs 10 crore.
hdfc bank savings account interest rate
The interest rate on savings accounts in HDFC Bank is 3 per cent for balances below Rs 50 lakh and 3.50 per cent for balances above Rs 50 lakh.
ICICI Bank Savings Account
At the end of the day, the interest rate will be 3 per cent on the balance of less than Rs 50 lakh. At the end of the day, the balance of more than Rs 50 lakh will have an interest rate of 3.5 percent.
PNB savings account interest rate
Punjab National Bank gives 2.70 per cent interest rate on the balance of less than Rs 10 lakh. Pays an interest rate of 2.75 per cent on account balances of less than Rs 10 lakh to Rs 100 crore. PNB gives 3% interest on account balance of Rs 100 crore and above.
Canara Bank Savings Account Interest Rate
Canara Bank offers interest rates ranging between 2.90 per cent to 4 per cent for various amounts. A maximum of 4% is paid on the balance amount of Rs.2000 crores.
How much amount received from savings account is taxed
Interest earned on savings bank account is tax free up to Rs 10,000 under section 80TTA of the Income Tax Act. If the interest received from these sources exceeds Rs 10,000, then the excess interest on the savings account will be taxable. For senior citizens, the amount received from savings accounts is Rs 50,000, the amount above which will be taxable.
