Savings Account Interest Rate Comparison: ICICI Bank vs HDFC Bank vs State Bank Of India
Check out the difference between interest rates on savings accounts of these three leading banks.
As a customer, you’re given a plethora of choices when you try to open a savings bank account. However, there are quite a few things you need to consider before choosing a bank, namely, the types of savings bank accounts offered, the Monthly Average Balance(MAB), or minimum average balance required to maintain your savings account, and most importantly, your savings bank account interest rate.
Today, we’ll take a look at the interest offered by some leading banks on your savings account. But before we get into that, let's learn of interest rates are calculated.
How Are Interest Rates Calculated On A Savings Account?
Your savings bank account interest is calculated on a daily basis on the end-of-the-day balance in your account. This interest is calculated at the rate that is specified by the respective banks in accordance with the directives of the Reserve Bank of India. Although interest is calculated on the daily balances maintained in your account, it is paid by the bank at quarterly intervals.
Now, let’s take a look at the savings bank account interest rate in ICICI Bank, HDFC Bank and the State Bank of India.
ICICI Bank Savings Bank Account Interest Rate
Interest rates on savings bank accounts change regularly in banks like ICICI Bank. The savings account interest rate was last updated on June 4, 2020. With effect from the aforementioned date, here’s the current interest rate on an ICICI Bank savings account:
HDFC Bank Savings Bank Account Interest Rate
HDFC Bank has a uniform interest rate on all their savings bank account, whether it’s a domestic savings account, NRO savings account or an NRE savings account. This rate of interest was last revised on April 6, 2022. However, the savings account interest rate HDFC bank offers is the same as ICICI bank. Here’s the current interest rate for HDFC bank savings account:
State Bank of India Savings Bank Account Interest Rate
State Bank of India, also known as SBI, has recently revised their interest rates on a savings bank account. Initially, the rate of interest on any amount deposited in an SBI savings account was 2.70% p.a. However, with the revised date being effective from October 15, 2022, if the end-of-the-day balance is ₹10 Cr or more, you are entitled to a higher rate of interest. Check out the current rates here:
Conclusion
As you can see, there’s a difference between the rate of interest offered in a government-owned bank and that offered in any privately owned bank. The savings account interest rate in HDFC bank and ICICI bank is higher in comparison to that offered in SBI bank. However, the Monthly Average Balance(MAB), also known as the minimum average balance required to maintain your savings account is usually higher in private banks than in government-owned banks.
So that means, now it’s a call you have to make whether you want a savings bank account where the MAB is lower but so is the rate of interest, or are you willing to maintain a higher account balance in order to earn more interest in a private bank.
Disclaimer: The information mentioned above was taken from the concerned bank's official website at the time of writing. BQ Prime is not liable for any changes. This article does not intend to pass on any financial advice and BQ Prime does not endorse any savings scheme. Please research well before you make any financial decisions.