Opening a Savings Account in India is always considered a lucrative option regarding risk-free returns, assured liquidity, and safety of funds. It is a basic banking solution offered by almost all NBFCs, Small Finance Banks, Public, and Private Sector Banks. Customers can choose from different types of Savings Accounts depending on their needs and requirements.
If you want more interest, you must put your money in an account with a high interest rate. Many Small Finance Banks offer above-average interest rate earning opportunities on a Savings Account. So, if you open a Savings Account with AU Small Finance Bank, you can get high-interest rates. Let’s get to know more about high-interest Savings Accounts.
Once you begin earning interest in a Savings Account, you will also get interest on the prior interest, and the process continues, known as the compounding process.
Those who wish to maintain an account balance ranging from INR 25 lakhs to less than INR1 crore can choose to hold a Savings Account with AU Bank Small Finance Bank, which is the best bank for Savings Accounts in India.
If you plan to open an AU Savings Account, you will earn high interest rate with monthly interest payout. Click here to check Savings Account Interest Rate
As per the RBI regulation, banks calculate the Savings Account interest rate based on the daily closing balance in the account. Below is the formula for computing the interest.
Interest = Daily balance * (Number of Days) * Interest / (Days in a Year).
Savings Account Interest = 90,000 *30 * (3.5%/100) / 365 = Rs 259
Most small finance banks offer high-interest rates amid the falling interest rates. Below is the list of banks offering up to high interest on Savings Accounts:
Read More : - How to select Best Banks for Savings Account
To accumulate high interest on your savings, you can choose to open a Savings Account with AU Small Finance Bank. The bank provides highest interest rate on savings account with Monthly Interest Payouts.
With a bank with a legacy of outstanding services, an extensive network, and ATM facilities in multiple locations, opening a high-interest rate Savings Account a bank would be a plus.
A higher interest Savings Account allows you to earn high interest that is relatively higher in comparison to the average interest rate on the account. AU Small Finance Bank is the best bank for a savings account in India.
AU Savings Account helps you earn monthly interest thanks to the power of compounding. The interest earnings are credited to the account every month. So, for the next month, you continue to earn interest on the account balance and the previous month’s interest. This is how you can earn monthly interest on Savings Account at AU Small Finance Bank.
Interest up to Rs 10,000 earned from all Savings Accounts is not taxable. If the interest earning is beyond INR10,000 in a financial year, then it is taxable under Section 80TTA of the Income Tax Act. This needs to be mentioned under the head “Income from other sources” when you file an Income Tax Return (ITR)
An interest rate considered by a bank depends on a lot of factors. People and businesses tend to borrow less when the interest rate is high. But, on the other hand, it encourages more people to save as one can avail more interest on Savings Account.
*Terms and Conditions apply. Rates are subject to change at the sole discretion of AU Small Finance Bank. For more details, visit our website.