Understanding Savings Account Interest Rates and Current Offers
A savings account is different from a fixed deposit because you can add or take out money whenever you want without penalties.
The bank checks how much you’ve deposited and subtracts any money you took out that day.
When you deposit money into a savings account, you can earn interest.
Interest is extra money the bank gives you for letting them hold your funds.
Most banks pay interest every three months, but some do it every month.This helps your savings grow over time.
The interest you earn depends on how much money you have in your account each day.
The bank checks how much you’ve deposited and subtracts any money you took out that day.
This daily check helps them figure out how much interest you should earn.
A savings account is different from a fixed deposit because you can add or take out money whenever you want without penalties. This makes it a flexible choice for managing your money.
Several important factors can affect savings account interest rates.
According to ICICI Bank, these include monetary policy, which consists of rules set by the central bank that affect interest rates; inflation, which refers to changes in prices that can lead to adjustments in rates; market conditions, which describe the current state of the economy; and bank performance, which looks at how well the bank is doing financially.
Here are the current savings account interest rates from major banks:
State Bank of India (SBI) gives 2.70% interest for balances up to ₹10 crore and 3.00% interest for balances over ₹10 crore, with rates effective from October 15, 2022.
HDFC Bank is providing 3.00% interest for balances under ₹50 lakh and 3.50% interest for balances over ₹50 lakh, effective from April 6, 2022.
ICICI Bank is offering a 3.00% interest rate for end-of-day balances under ₹50 lakh and 3.50% interest for balances over ₹50 lakh.
This shows how different banks reward you based on your account balance.
