How to Open a Savings Account: Compare Rate Before Opening One?

Savings Account

A savings account is an interest-bearing deposit account. The bank savings account interest rate is not too high, but the overall reliability and safety of the money make them a good option. You must go through the list of banks in India and compare their interest rates before opening an account. 

List of Banks in India and their Interest Rates

The following table contains the bank savings account interest rate:

Bank Interest RateMinimum Balance Requirement
Indian Bank 2.90% p.a.₹1000 for Rural/Semi-urban with cheque facility₹500 without cheque facility₹2,500 for metro cities with a cheque facility₹1,000 without cheque facility
Kotak Bank 3.50% p.a.Zero Balance 
DBS Digibank 3.00% p.a. to 4.00% p.a.Zero Balance 
Axis Bank3.00% p.a. onwardsZero Balance 
State Bank of India 2.70% p.a.Metro or Urban: ₹10,000 Semi-Urban: ₹ 5,000 Rural: ₹ 2,000 
Punjab National Bank2.70% p.a.Rural: ₹500/-Semi-Urban: ₹ 1000/-Urban:  ₹2000/-Metropolitan: ₹2000/-
Standard Chartered Bank Digital Savings Account2.75% p.a. onwards₹2 lakh
IDFC Bank Savings Account3.00% p.a. to 5.00% p.a.₹10,000
Yes Bank Savings Account4.00% p.a. to 5.00% p.a.₹10,000
IndusInd Bank Savings Account4.00% p.a. onwards₹1,00,000

Types of Saving Account

You should understand the different types of savings accounts before opening one:

  • Regular Savings Account: Opened on basic terms and conditions. They do not require deposits of consistent amounts.
  • Salary-based Savings Account: Opened at the request of companies for payment disbursal to their employees. You must check the list of banks in India that offer preferential rates for these accounts. On the date of payment disbursal, the bank withdraws money from the company account and distributes it to employee accounts. They do not have a minimum balance requirement. When salary is not credited for three consecutive months, they are converted to a regular savings account.
  • Senior Citizens Savings Accounts: Similar to regular savings accounts, they offer much higher interest rates. 
  • Minors’ Savings Accounts: They do not have a minimum balance requirement. They are curated to educate children about banking facilities. They are operated under a legal guardian’s supervision until the child reaches ten years old. After 10, they can operate the account themselves and once 18, the account is converted to a regular savings account.

What are the Eligibility Criteria for Opening a Savings Account?

The eligibility criteria for savings accounts can be different for various banks. However, the common criteria as collected from the list of banks in India are as follows:

  • It can be opened singly and jointly by Indian residents who are 18+.
  • Hindu Undivided families and Foreign nationals are eligible too.
  • A minor can open an account with their parents. 

What Documents Should be Submitted for Opening a Savings Account?

You will have to submit the following documents:

  • Proof of age and identity: Passport, PAN, Voter ID, and Driving licence
  • At least two passport-sized photographs
  • Proof of address: Driving licence, Utility bill, Voter’s ID, Passport.
  • Senior Citizen Card issued by the Social Welfare Department. 

How to Open Savings Account Offline?

The steps to open a savings account are as follows:

  • Visit the bank with the essential KYC documents. 
  • You must carry your original documents and self-attested photocopies of the same. 
  • In the bank, request the account opening form from the designated counter. 
  • Go through the entire form and fill it up. Also, thoroughly check for all the details.  
  • Submit the completely filled and signed form with copies of your documents.
  • The bank officer will then forward your application for further processing and verification.

How to Open a Savings Account Online?

Follow the below-mentioned steps to apply for opening an account online:

  • Choose from the list of banks in India and visit its online portal. 
  • Choose ‘Savings Account’
  • Enter required details and attach scanned copies of the KYC documents. 
  • Submit the application for further processing and verification. 

Opening a savings bank account is simple and easy, especially when you apply online. However, you must go through the list of banks in India and compare the bank savings account interest rate to select the one that suits your needs.

Read Also: All about ICICI Personal Loan

Ashish jha

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