Banks paying more than 4% on Savings Bank Deposits

The Reserve Bank of India (RBI) has deregulated the interest on Savings Bank (SB) Deposits. Before that RBI used to regulate the rate of interest that is to be paid to SB deposits. Before deregulation the rate of interest mandated by RBI was 4%. The deregulaltion came into effect from 25the October 2011.

If you are aware the RBI also changed the way the banker's used to pay interest on SB deposits wef 1st April 2010. Before that date the bankers' used to pay interest on lowest balance in SB account from 10th to last day of month. From 1st April 2010 the bankers' are paying interest on daily closing balance.

None of Public Sector Banks has changed the rate on SB deposits after deregulation. In private sector banks also except few banks no other banks have changed the rate. The list of banks offering more than 4% on SB deposits is given below;

Interest payable to those customers who maintain balance of upto Rs. 1 lakh.

Indus Ind Bank 5.5%

Yes Bank 6%

Kotak Mahindra Bank 5.5%

Karnataka Bank 5%

Interest payable to those customers who maintain balance of above Rs. 1 lakh

Yes Bank 7%

Indus Ind Bank 6%

Kotak Mahindra Bank 6%

Saraswat Co-op Bank 6%

Kotak Bank is actively promoting the increase through TV commercials and Yes Bank is doing so in News Paper Ads.

Its interesting to see that HDFC Bank, ICICI Bank and Axis Bank has not increased the rates.