First IDFC Bank
IDFC First Bank will provide you with a maximum interest rate of 6%, higher than that of a term deposit account, from April 1, 2022. Interest on the savings bank account would be determined on the daily balances of end of day at the interest rate, as directed by the Reserve Bank of India. The bank will pay monthly interest on your account at the Caisse d’Epargne.
| Balance (rupees) | Interest rate (% pa) (Progressive) |
|---|---|
| Less than or equal to 1Lake | 4.00% |
| More than 1 lac less than or equal to 10 lac | 4.50% |
| More than 10lac less than or equal to 25lac | 5.00% |
| More than 25lac less than or equal to 1Cr | 6.00% |
| More than 1Cr less than or equal to 100Cr | 5.00% |
| More than 100 Cr less than or equal to 200 Cr | 4.50% |
| More than 200 Cr | 3.50% |
| Source: Bank’s website (In force since 01/04/2022) |
RBL Bank
RBL bank cut interest rates on savings accounts on Thursday. Customers received a maximum interest rate of 6.25% until March 31, 2022, but from April 1, 2022 savings account holders will receive a maximum interest rate of 6.00 %. Interest on savings bank accounts will be paid quarterly, while interest will be determined based on the daily account balance.
| Daily balance | Interest rate (pa) in effect until March 31, 2022 | Interest rate (pa) as of April 01, 2022 |
|---|---|---|
| Up to Rs. 1,000,000 | 4.25% | 4.25% |
| Above Rs. 1 lakh up to Rs. 10,000,000 | 5.50% | 5.50% |
| Above Rs. 10 lakh and up to Rs. 3 crore | 6.25% | 6.00% |
| Above Rs. 3 Crore up to Rs. 5 Crore | 6.25% | 6.00% |
| Above Rs. 5 Crore up to Rs. 10 Crore | 6.00% | 5.75% |
| Above Rs. 10 Crore up to Rs. 50 Crore | 5.75% | 5.75% |
| Above Rs. 50 Crore up to Rs. 100 Crore | 5.25% | 5.25% |
| Above Rs. 100 Crore up to Rs. 250 Crore | 5.00% | 5.00% |
| Above Rs. 250 Crore up to Rs. 300 Crore | 5.00% | 4.00% |
| Above Rs. 300 crore | 4.00% | 4.00% |
| Source: Bank website |
To note
Customers should be reminded that under Section 80TTA of the Income Tax Act, interest earned on a savings bank account is tax exempt up to Rs 10,000. Interest generated exceeds Rs 10,000, excess interest on the savings account will be taxable to the account holder. Interest from savings accounts is taxed under “Income from other sources” and banks do not deduct TDS on interest. Customers who wish to set up a post office savings account will benefit from an unchanged interest rate of 4% for the first quarter of the financial year 2022-23, which runs from April 1 to June 30, 2022.
