A majority of people like to keep some cash at hand, in the form of an emergency fund, for meeting unexpected expenses.
A savings account usually offers a puny interest on such deposits. However, some banks give a higher rate of interest even on savings account deposits in order to encourage people to keep funds in their accounts. Private lender RBL Bank is one such bank which offers a high-interest rate on savings account deposits. The lender has hiked interest rate on savings account to a maximum of 6.25%, effective September 5, 2022.
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“Attention of customers/public is invited on the changes in interest rates Saving Deposits w.e.f. September 05, 2022 Interest rates on Savings Deposit (including NRE/NRO Savings),” an update on RBL Bank’s website read.
RBL Bank has kept the savings account interest rate unchanged at 4.25% for balances up to Rs 1 lakh and at 5.50% on bank balances from Rs 1 lakh to Rs 10 lakh. Deposits from Rs 10 lakh to Rs 25 lakh will get 6% interest but deposits above Rs 25 lakh and up to Rs 1 crore will earn a new interest rate of 6.25%, up from 6% previously.
The interest on deposits ranging from Rs 1 crore to Rs 5 crore has been increased from 6% earlier to 6.25%. The bank also hiked interest from 5.75% to 6.25% on deposits ranging from Rs 5 crore to Rs 7.5 crore. The new rate on deposits ranging from Rs 10 crore to Rs 50 crore will be 6.10%.
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“Interest will be calculated and accrued daily based on the end-of-day balance in the account. The interest is paid/credited to customer’s account on a quarterly basis on 30th June, 30th September, 31st December and 31st March each year,” said RBL Bank on its website.
Several banks have hiked deposit rates after the Reserve Bank of India hiked repo rates by 140 basis points in the last three months to tame inflation.
