2. The Result of De-Regulated Savings Bank Interest Rate

The RBI’s deregulated savings bank interest regime has definitely helped the customers/ depositors to earn more interest on their savings bank account. Since many banks are trying to increase their rates on low cost savings bank accounts, in the bottom line, the banks have not increase their rates more than 4 percent. In reality, banks like IndusInd Bank, Kotak Mahindra Bank and Yes Bank provide interest rates of 5.5 percent, 5.5 percent and 6 percent respectively, on the deposits of below 1 lakh. For the bank deposits of more than 1 lakh, the same banks are offering interest rates at 6 percent, 6 percent and 7 percent per annum respectively.

However, some big banks like ICICI Bank, SBI and HDFC Bank have maintained their 4 percent per annum mark. This shows that interest rates are not the only thinking that you must consider while choosing to open a bank account. There are other reasons like quality of the services, familiarity with the bank, user-friendly interfaces, plays an important role.

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