The finance sector is undergoing rampant digitization. The mode of payments has undergone a severe transition from monetary payments to digital payments. However, a core component required for the digital transition is a bank account. Apart from that it’s necessary to have a bank account in order to derive benefits from various government schemes and subsidies. Therefore due to such reasons, the government has taken an aggressive stance towards encouraging people to open bank accounts.
If you are planning to open a savings bank account in India in 2023, deep dive into the article to know more about it.
What is a Savings Bank Account?
A savings bank account is one of the most basic banking services provided by a financial institution. A savings bank account helps an individual to deposit his money and withdraw it according to an individual’s ease. A savings account helps an individual safeguard his money from any kind of untoward incidents such as theft etc. Banks provide individuals with interest on the deposited money. The interest is calculated in tandem with the RBI guidelines.
However, there are hordes of banks providing “savings bank account” services therefore you need to carefully analyse the savings bank account services before proceeding further.
What Factors to Check Before Opening a Savings Bank Account in India?
Most of the Indian banks are safe to open savings accounts with, as the Indian banking sector is one of the most stable and reputed all over the world. However, before opening a savings bank account in India, you should still be checking a few important things.
Here are some key factors to check:
Reputation and credibility of the bank
Choose a bank that is well-established, trustworthy, and has a good reputation in the market. Research about the bank’s history, financial stability, customer reviews, and its standing with regulatory authorities like the Reserve Bank of India (RBI).
Account types and features
Understand the various types of savings accounts offered by the bank and the features associated with each type. Consider factors such as minimum balance requirements, interest rates, withdrawal limits, online banking facilities, and additional benefits like a debit card, checkbook, or ATM access.
Minimum balance requirements
Banks in India often require customers to maintain a minimum average balance in their savings accounts. Make sure you are aware of the minimum balance requirements and check if you can comfortably meet them without incurring any penalties or charges.
Compare the interest rates offered by different banks on savings accounts. Look for banks that provide competitive interest rates, as it can significantly impact your savings growth over time.
Fees and charges
Inquire about the banks fees and charges associated with the savings account. Common charges include annual maintenance fees, ATM withdrawal fees, non-maintenance penalties, and charges for additional services. Ensure you understand these charges and assess if they align with your banking needs.
Accessibility and convenience
Consider the bank’s branch and ATM network and their proximity to your residence or workplace. Additionally, check if the bank offers convenient online banking services, mobile banking apps, and 24/7 customer support for seamless access to your account.
Customer service and support
Good customer service is essential when choosing a bank. Research the bank’s reputation for customer support, responsiveness, and dispute resolution mechanisms. Look for reviews or feedback from existing customers to get an idea of the bank’s service quality.
Ensure that the bank you choose has robust security measures in place to protect your funds and personal information. Inquire about features like two-factor authentication, secure online transactions, and data encryption to safeguard your account.
Consider any additional services or benefits offered by the bank, such as overdraft facilities, loan products, investment options, and insurance coverage. These offerings may be useful in the future as your financial needs evolve.
Terms and conditions
Carefully read and understand the terms and conditions associated with the savings account, including the account opening process, operational guidelines, and any specific restrictions or limitations. Clarify any doubts or concerns you may have with the bank before proceeding.
It is advisable to compare multiple banks and their offerings to make an informed decision that aligns with your financial goals and requirements.
Top Banks to Open A Savings Bank Account in 2023
State Bank of India also abbreviated as SBI operates as one of the biggest Public Sector Banks in India. It’s a multinational firm that has a combined legacy of around 200 years. Due to its long-standing legacy, the bank has garnered massive trust across the Indian populace. The bank currently occupies a quarter of the market share of the banking sector in India.
SBI Savings account
When it comes to opening a savings bank account the most probable option is SBI. It offers a seamless experience with various features. It has no compulsion on its customers pertaining to minimum balance. However, the maximum balance limit differs depending on the account.
Generally, SBI provides an interest rate of around 2.70% on a yearly basis. However, if your consolidated balance of your savings bank account is higher than ₹10 crores, the interest rate increases to 3.0% on a yearly basis.
Read more SBI-related articles:
- How to check SBI Bank Balance | SBI Bank balance check number
- SBI Customer Care Support Number or Tollfree Number
PNB is owned by the Ministry of Finance and currently operates as the second-largest bank in India. It possesses a long-standing legacy after being established in Lahore in the year 1894. Apart from that the bank has conducted mergers with nine banks in the past.
PNB Savings account
PNB helps individuals open a bank account effortlessly. Its minimum and maximum balance requirements vary depending on the type of account. However the basic savings bank account levy no compulsion on its customers to maintain a minimum balance. Apart from that, PNB provides an interest rate of 2.70% on a balance below 10 lakh. The interest rates rise to 2.75% on a balance between ₹ 10 lakhs and ₹ 100 crore.
Related PNB articles:
- How to generate PNB ATM PIN first time (Green Initiative)
- How to check PNB Bank account balance using net banking?
Union Bank of India was established in 1919 and currently operates as one of the biggest public sector banks in the country. The bank has already been listed and the Government of India occupies a share of 89.07% in the overall bank capital.
UBI Savings bank account
Opening a savings bank account in UBI is very easy. The bank allows individuals to open a savings bank account with a minimum balance of ₹1000. However, the amount of minimum and maximum balance isn’t saturated to the particular number. Instead, it varies depending on the type of savings bank account. The bank provides its customers with an interest rate of 2.750% on an amount of up to ₹ 50 lakhs deposited in the savings bank account. Apart from that an interest rate of 2.90% is credited on a balance between ₹ 50 lakhs and ₹ 100 crore.
Housing Development Finance Corporation which is also abbreviated as HDFC has currently positioned itself as the biggest private sector bank operating across the landscape of Indian markets. The bank has provided crucial help to the nation through its involvement in the reshaping and restructuring process of the country.
HDFC Bank provides a customer with the swiftest process to open a bank account. Its minimum balance limit varies depending on the location. An individual residing in a rural area has to maintain a minimum balance of ₹5000. An individual residing in an urban area has to maintain a minimum balance of ₹10000 to ₹25000. The minimum balance in an urban area is calculated on the basis of average and therefore keeps fluctuating. HDFC provides an interest of 3% per annum on the deposited amount. However, if the overall savings in the bank exceed ₹ 50 lakhs and the interest rate changes to 3.50 % per annum.
ICICI Bank established in the year 1994 operates as one of the biggest private sector banks in the country. The bank has already created history by being the first corporation to get listed on the New York Stock Exchange. Currently, it offers its customers a range of financial services and serves customers across retail, corporate, and SME. Therefore the bank currently caters to a heavy pool of customers.
ICICI Bank savings account
ICICI Bank provides a range of services across its savings bank account. Apart from that it also provides users with a facility to open a savings bank account through an online medium of communication. The bank requires an individual to keep a minimum balance of ₹1000 in his account. This amount may vary depending on the geographical factors. However, it has no limit pertaining to the maximum balance. It also provides an interest rate of 3% on the deposited money. If the deposited money exceeds the limit of ₹ 50 lakhs the interest rate changes to 3.50%.
Kotak Mahindra Bank launched in the year 1985 has steadily built itself across the banking sector and currently positioned itself as the most trusted bank. The bank is always on the lookout for various opportunities to incorporate technology into banking and enhance the features of the overall venture.
Kotak Mahindra Bank Savings account
Kotak Mahindra Bank provides its customers with an option to open a savings account through the online medium. It has positioned itself as one of the best online savings accounts in the country. The bank has no limit when it comes to the minimum balance. The interest rates on the deposited money keep varying. While the bank provides an interest rate of 3.5% on the deposited amount
Bank of Baroda has a long-standing legacy which expanded across a century. The bank has taken a pioneer role in bringing various customer-centric initiatives in the banking sector in India. Also, the bank has created a strengthened position for itself across the rural and semi-urban landscape across the country.
In Order to open a Savings bank account in Bank of Baroda you need to go to the nearest branch and open it through online mode. The minimum balance limit varies depending on various factors. However an individual needs to maintain an average minimum balance of ₹ 1000. The interest rates provided on the deposited money fluctuate depending on the amount of money deposited. While the bank provides an interest rate of 2.75% on average it changes to 3% if the deposited amount exceeds ₹ 50 Crore. If the total deposited amount exceeds ₹ 200 crore the interest rate changes to 3.05%.
Bank of India established in the year 1906 has been a pioneer across various segments in the Indian banking sector. It was the first nationalized bank in the country which operated the first fully computerized branch and an ATM facility in the country. Apart from that the bank has been a pioneer in the introduction of various innovative features and banking facilities in the country.
Bank of India savings account
A savings account in the Bank of India has to be opened through the offline mode. It requires its customers to maintain a minimum balance of ₹ 500 in its savings bank account. However, they have no limit on the maximum amount across any savings bank account. The bank currently provides its customers with an interest rate of 2.75% on a deposited amount upto ₹ 1 lakh. The interest rate immediately fluctuates to 2.90% on a deposited amount above ₹ 1 lakh.
Axis Bank ranks third among the topmost private-sector banks in India. It is categorized as one of the topmost first-generation private sector banks of the country launched in 1994. It provides a range of financial services to its customers.
Axis Bank savings account
The savings account services of Axis Bank come loaded with various features and premium advantages etc. While opening a savings bank account in Axis Bank an individual needs to maintain a minimum balance of ₹ 2500. The bank provides an interest rate of 3% on a deposited amount up to ₹ 50 lakhs. While the interest rate changes to 3.50% if the deposited amount exceeds ₹ 50 lakhs up to ₹ 500 crore.
Canara Bank was nationalised in 1969. After that, it has always positioned itself as a bank that revolves around the customer. It is regarded as a financial conglomerate due to its extensive footprint across various banking segments and due to its joint ventures with various overseas and India-based financial institutions. Apart from that they are the pioneers of launching credit cards for farmers.
Canara Bank Savings account
Canara Bank has set up a seamless and easy process to open a bank account at its local branch. A customer has to maintain a minimum balance of ₹1000 in their savings account. However, the bank doesn’t possess any maximum balance limit across any type of savings bank account. The interest rates provided by the bank fluctuate between 2.90% to 3.20% which is subject to variation on the quantity of the deposited amount. On a consolidated balance up to ₹10 crore, it’s calculated at 2.90%. If the deposited amount is between ₹ 5 crore to ₹ 10 crore it’s 2.95%.
Latest Savings Bank Interest Rate Offered By Top Banks
|Name of Bank
|Rate of interest
State Bank Of India
|Upto ₹ 10 crore
|More than 10 crore
Punjab National Bank
|Below ₹ 10 lakh
|Between ₹ 10 lakh and ₹ 100 crore
Union Bank of India
|Upto ₹ 50 lakh
|Between ₹ 50 lakh and ₹ 100 crore
|Upto ₹50 lakh
|Above ₹ 50 lakh
|Upto ₹ 50 lakh
|Above ₹ 50 lakhs
|Kotak Mahindra Bank
|Upto ₹ 50 lakh
Bank Of Baroda
|Upto ₹ 50 Crores
|Between ₹ 50 crore and ₹ 200 crore
Bank of India
|Upto ₹ 1 lakh
|Above ₹ 1 lakh
|Upto ₹ 50 lakhs
|Between ₹ 50 lakhs and ₹ 500 crore
|Upto ₹ 100 Crore
What are the types of savings bank accounts?
The savings bank account can expand across various types which are listed as follows
- Senior Citizens
Which documents are supposed to be provided to the banks to open a savings bank account?
In order to open a savings bank account an individual needs to submit their Aadhar Card and PAN card. While opening an account through the online medium an individual needs to submit the respective numbers of the document. Apart from that you are supposed to fill out a savings account opening form.
How to take interest from a savings bank account?
The interest on the money deposited in the savings bank account is calculated by the bank on a quarterly or biannual basis. The calculated amount is directly deposited into your bank account.
A savings bank account is a basic prerequisite that everyone should possess. A savings bank account is beneficial due to the security it provides. However before finalizing the decision to open a savings bank account, always extensively consider various features and facilities provided by the bank.
More Savings account related articles: The Guide to Making a Savings Plan
Which is the best bank to open a Savings bank account in 2023?
Interest should not be the only criterion for selecting the best bank for opening a Savings bank account. You should consider other factors like ease of use, safety, the amount you would be parking, etc.
Since I am more into using online features of a bank, for me ICICI is the best bank for opening a Savings account. For anyone who loves security and looking for PSU banks only, SBI is a good option. SBI has branches almost in all places across the country.
If you are only interested in a higher rate of interest on the savings bank account, you could refer to the Excel sheet above, and go with a bank that pays the highest interest rate.
The above article provides a list of the top banks that one should opt for in order to open a savings bank account. The minimum balance limit and interest rates have been mentioned therefore always ensure them before proceeding further.
What did we learn?
- 1 What is a Savings Bank Account?
- 2 What Factors to Check Before Opening a Savings Bank Account in India?
- 3 Top Banks to Open A Savings Bank Account in 2023
- 3.1 State Bank of India
- 3.2 Union Bank of India
- 3.3 HDFC Bank
- 3.4 ICICI Bank
- 3.5 Kotak Mahindra Bank
- 3.6 Bank Of Baroda
- 3.7 Bank of India
- 3.8 Axis Bank
- 3.9 Canara Bank
- 4 Latest Savings Bank Interest Rate Offered By Top Banks
- 5 FAQs
- 6 Which is the best bank to open a Savings bank account in 2023?