According to the bank market, IDBI Bank and Canara Bank offer interest rates of up to 3.5 percent and 3.2 percent respectively on savings accounts.
- January 16, 2021, 2:26 PM IST
According to data from Bank Bazaar.com, public sector banks like IDBI Bank and Canara Bank offer interest rates of up to 3.5% and 3.2% respectively on savings accounts. These interest rates are competitive as compared to private banks. For example, HDFC Bank and ICICI Bank offer 3 to 3.5 percent interest and Kotak Mahindra Bank offers interest rates of 3.5 percent to 4 percent. Recently, Canara Bank announced an increase in interest rates on fixed deposits.
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SBI not in the list of banks offering top 10 interest ratesHowever, large public sector banks pay less interest to their savings account holders. For example, State Bank of India and Bank of Baroda pay 2.70 percent and 2.75 percent interest respectively. Bank of Baroda is at the bottom of the list of banks offering top 10 interest rates. The special thing is that SBI is not in this list.
Data prepared by BankBazaar on 13 January 2021 from banks website
Also read- Good news! Canara Bank hikes FD interest rates, check new rates
Small finance banks are offering up to 7% interest on savings account
Interest rates offered by small finance banks to savings account holders are higher than public sector banks. For example, AU Small Finance Bank and Ujjivan Small Finance Bank are offering interest rates of 7 per cent and 6.5 per cent respectively.