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Day 10 – Switch to a saving bank that offers you higher interest rate

So by now, you know there are a lot of investment options available. You might have also considered options which are suitable for you.

Day 10 – Today we have a profitable tip for you which won’t cost you anything! 

Why do I need to keep money in my saving bank account? 

One needs to keep some money liquid in a savings bank account in form of an emergency fund. Some people invest in liquid funds but my personal favorite is a savings bank account because of fixed return in form of interest. Also, you can withdraw from ATM anytime as compared to liquid funds.

How much does your saving bank account pay you in form of interest? 

The average is 3.5% pa. 

Tax benefits Interest up to Rs. 10,000 is exempt under Section 80TTA

Check out banks which offer a higher interest rate

Bank Minimum Balance (INR) Interest rate up to 1 lakh INR (%) Interest rate above 1 lakh INR (%)
Ratnakar Bank 5,000 5.50% 6%
Yes Bank 5,000 5.00% 6%
Kotak Mahindra Bank 5,000 5.00% 6%
AU Small Finance Bank 5,000 5.00% 6%
Bandhan Bank 5,000 4.00% 6%
IndusInd Bank 5,000 4.00% 4%
ICICI Bank 10,000 3.5% to 4% 3.5% to 4%
HDFC Bank 10,000 3.5% to 4% 3.5% to 4%
Bank of Baroda 5,000 3.50% 3.50%
SBI 1,000 3.50% 3.50%

 

Also, check out – Top 10 Banks in India.

Try switching to that bank account which offers high-interest rate. I personally use Kotak Mahindra Bank’s savings account. 2.5% makes a huge difference. 

Comment and share your thoughts across.

This post is a part of our series – 31 days improve your financial life

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