State Bank of India, the country's largest lender by assets, recently slashed savings deposit rates by 25 basis points (bps) or 0.25 percent. The new rates, SBI said, will be effective from April 10. The bank said its savings rates for balances of up to Rs 1 lakh and above will be reduced to 2.75 percent as against the earlier 3 percent.

As per Reserve Bank of India rules, interest on a saving account is calculated on a daily basis based on the closing amount. The interest accumulated is credited to the account on half yearly basis or quarterly basis depending on the type of account and the bank’s rule.

The interest rate offered on the balance amount in a savings account varies among banks.

Here are the interest rates offered by top lenders on savings accounts:

HDFC Bank

The country's leading private sector bank offers an interest rate of 3.50 percent on savings deposits below Rs 50 lakh. On deposits of Rs 50 lakh and above, the lender offers 4 percent interest.

ICICI Bank

ICICI Bank offers 3.5 percent interest rate on balances up to Rs 50 lakh. On balances above Rs 50 lakh, it offers 4 percent.

Punjab National Bank (PNB)

On balances up to Rs 50 lakh, PNB offers 3.5 percent interest. It offers 4 percent on balances of Rs 50 lakh and above.

YES Bank

YES Bank offers 5 percent interest rate on balances up to Rs 1 lakh. On balances above 1 lakh up to Rs 1 crore, it offers 6 percent interest. The bank offers 6.25 percent interest rate on balances above 1 crore, but up to Rs 5 crore.

Kotak Mahindra Bank

Kotak Mahindra Bank offers 4 percent interest on savings accounts of up to Rs 1 lakh. On deposits above 1 lakh, it offers 5 percent rate.

First Published:Apr 8, 2020 9:14 PM IST