According to an email sent to customers, RBL Bank’s interest rate on savings accounts with a balance up to Rs 1 lakh is 4.25%, Rs 1 lakh up to Rs 10 lakh it is 5.5%, and for accounts with a balance between Rs 10 lakh and Rs 5 crore it is 6%. These new prices will be effective from December 1, 2021.
* For balances above Rs. 5 Cr., Please contact your Relationship Manager / Branch Manager.
Interest will be calculated and accrued daily, based on your end of day account balance and will be paid / credited to your account on a quarterly basis.
Compared to this, the State Bank of India (SBI) is offering 2.7% on savings accounts. ICICI and HDFC Bank offer an interest rate of 3% on balances up to Rs 50 lakh and an interest rate of 3.5% on balances over Rs 50 lakh.
In fact, on Tuesday, PNB announced a reduction in its savings accounts for balances below Rs 10 lakh to a record high of 2.80% per annum. Click here to read the full story.
FD rate vs savings accounts
The savings account rates of many small banks are even higher than the FD rates of the larger private banks and PSUs.
SBI’s fixed deposit rates range from 2.9% to 5.10% for terms of up to three years, which is lower than RBL’s savings interest rate of 5.50% for balances. up to Rs 10 lakh and 6% for balances exceeding Rs 3 crore and up to Rs 5 crore.
For amounts less than Rs 2 crore, HDFC Bank pays 2.5% to 5.15% for a term of up to three years.