Highest Interest Rate on Saving Account: Banks across the country provide the service of opening various types of savings accounts according to the needs and facilities of the customers. Many banks also offer attractive interest rates to their customers on savings accounts, which prove to be very profitable for the customers. The interest rate on savings accounts is calculated on the basis of daily closing balance.
As per the bank rules, the interest being given on the savings account is credited to your account at monthly or quarterly intervals. How much interest will be given on savings account depends on the bank. Let us tell you that FD gives the highest interest rate for senior citizens, they do not get the benefit of interest rate of savings account. Here let’s see how much interest SBI, ICICI Bank, HDFC Bank, PNB, Canara Bank are paying on savings account.
SBI Saving Account Interest rates
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 Saving Account
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 Interest for Saving Account
At the end of the day the interest rate on the balance of less than Rs 50 lakh will be 3 percent. At the end of the day, the balance of more than Rs 50 lakh will have an interest rate of 3.5 percent.
Punjab National Bank
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 Saving Account
Canara Bank offers an interest rate between 2.90 per cent to 4 per cent for the amount on the savings account. A maximum amount of 4% is paid on the balance amount of Rs.2000 crores.
How much tax will be charged on the interest amount received from the savings account
Under Section 80TTA of the Income Tax Act, the interest earned on the savings bank account is tax free up to Rs 10,000. 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 limited to Rs 50,000, the amount above which will be taxable.
