A savings account is a deposit account you hold with a bank. This is an interest-bearing account and although these kinds of accounts do not have high interest rate, it is the reliability and safety which make them a good option for saving your money.

As per data compiled by BankBazaar, new private banks such as Bandhan Bank and IDFC First Bank offer interest rates of up to 7.15 percent and 7 percent, respectively on their savings account. Other private banks offer interest of up to 6.75 percent. These interest rates are higher compared to leading private and large public sector banks. For instance, HDFC Bank and ICICI Bank offer 3 percent to 3.5 percent interest, the State Bank of India (SBI) and Bank of Baroda offer 2.70 percent and 2.75 percent interest respectively on their savings account.

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