10 Banks with Highest Interest Rates in India

Bangalore: In December 2012, Competition Commission of India decided to take a look at the banking sector of India. Most of the public sector banks offer common 4 percent interest rates even though the Reserve Bank of India moved to an unregulated regime in October 2011. For banks, current accounts (CA) and savings accounts (SA) are the steadiest and cheapest source of funds. Banks usually target at least 30 percent of their total deposits from CA and SA. While maximum of the Indian population choose to keep their money in the savings account (SA), read on to know few popular banks with their current savings accounts interest rates on yearly basis.

1. Yes Bank

Savings Account Interest Rate: 6 percent

Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with the duo holding a collective financial stake of 27.16 percent. The bank provides a higher return of 7 percent p.a. on Savings Account for balance more than 1 lakh & 6 percent p.a. for balance up to 1 lakh.

YES BANK has received significant national and international recognitions which include Dr. Rana Kapoor, Founder, MD & CEO being recognized as the Entrepreneurial Banker of the Decade 2001-2010 by Bombay Management Association and was also Business Standard Banker of the Year 2011.

2. Kotak Mahindra

Savings Account Interest Rate: 6 percent

Kotak Mahindra is an Indian financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company. From 1st November, 2011, the bank offers 6.0 percent interest p.a. on Savings Account balance over 1.lakh and 5.5 percent p.a. on balance up to 1 lakh. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).

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