Best Savings Account for Balance Above ₹1 lakh

Last Updated : Sept. 25, 2024, 11:31 a.m.

A savings account is one of the oldest and most reliable ways to keep your money safe. Not only does it ensure security, but it also offers interest on the balance maintained. Each bank sets a minimum balance requirement, which varies based on the type of savings account. Additionally, savings account interest rates are often tiered, depending on the balance in the account. In this context, we will focus on the annual interest rates and best savings account for balances above ₹1 lakh.

Highest Savings Account Interest Rates for Balance Above ₹1 lakh

Below are the interest rates that you get on a savings account for maintaining a balance of more than ₹1 lakh every month.

What are the Services offered by banks on Savings Account Balance above ₹1 lakh?

Below are the features of savings account banks in India offer:

• Higher Interest Rate - Many banks offer tiered interest rates, where accounts with a higher balance, like above ₹1 lakh, earn a slightly higher interest compared to lower balances.

• Free/Discounted Locker Services - Customers maintaining a high balance are often eligible for discounted or free locker facilities, depending on the bank’s policies.

• Personalized Relationship Manager - High-balance account holders may be assigned a dedicated relationship manager to assist with their banking needs, including investments, loans , and other financial products.

• Premium Banking Accounts - Some banks automatically upgrade high-balance accounts to premium or priority banking accounts, offering additional benefits like higher transaction limits, concierge services, and preferential rates on loans or investments.

• Unlimited Free Transactions - High-balance accounts often come with unlimited ATM withdrawals and NEFT / RTGS transactions without any charges.

• Free Cheque Books and Demand Drafts - Some banks provide complimentary cheque books, demand drafts, and free issuance of debit/ credit cards to high-balance account holders.

• Preferential Loan Rates - Certain banks offer lower interest rates on loans (like personal or home loans ) for customers maintaining a substantial savings balance.

• Higher Withdrawal and Transaction Limits - Account holders with a balance above ₹1 lakh might get higher daily withdrawal limits for ATMs and higher limits for online banking transactions.

• Exclusive Access to Investment Products - Many banks offer high-balance account holders exclusive or early access to mutual funds, fixed deposits, or other investment options with higher returns or special terms.
  
• Complimentary Insurance Cover - Some banks provide free insurance coverage, such as accident insurance or health insurance, to those maintaining a higher savings balance.

These services can vary by bank, and it’s advisable to check with your bank for specific details and offers related to high-balance savings accounts.

Calculate Your Savings on Maintaining a Balance of ₹1 Lakh and Above

A comprehensive savings account comparison helps in identifying which bank offers the most attractive interest rates. While comparing different banks, several factors should be considered, such as the minimum balance requirement and the interest rate offered on the balance amount you can maintain in the account. If your current bank provides a lower interest rate compared to others, it might be beneficial to switch to another bank offering higher rates. This can optimize the interest earned on your savings and potentially give you access to better banking services.

For instance, you have a balance of ₹1,00,000 in your savings bank account but your bank is giving the rate of 4% per annum (interest calculated every month), you are only earning the interest of ₹4,074.15 which makes it ₹104,074.15. If you get a higher rate of 7%, you would make a total of ₹1,07,229.01 which is a smart choice.

So, here you are saving approx ₹3,000 and to make the most out of your money, you can keep your money in a bank account giving you the highest rate of interest with the security of your money. You can also open a new savings account online if you are not satisfied with the present rate of interest.

6 Benefits of Maintaining Balance Above ₹1 lakh

Maintaining a balance above ₹1 lakh in a savings account can offer several benefits, depending on the bank and type of account. Some common advantages include:

• Higher Interest Rates: Many banks offer tiered interest rates, which means the higher your balance, the better the interest rate you receive on your savings.

• Premium Banking Services: Banks often provide premium or priority banking services to customers with high balances, such as dedicated relationship managers, faster service, or access to exclusive products.

• Fee Waivers: Customers maintaining a higher balance may enjoy fee waivers on various banking services like ATM withdrawals, cheque book issuance, or online banking transactions.

• Exclusive Offers: Banks may offer special discounts or offers on products like loans, credit cards, and insurance to customers with balances above ₹1 lakh.

• Better Loan and Credit Card Eligibility: A higher savings balance can improve your eligibility for personal loans or credit cards with better terms.

• Free Access to Airport Lounges and Other Perks: Some banks offer lifestyle benefits like free access to airport lounges , concierge services, or travel insurance for customers with a high savings balance.

These benefits can vary by bank and type of account, so it's essential to check with your specific bank for detailed information.

Who All Can Open Regular Savings Account?

Here is the list of people who are eligible to open regular savings accounts -

• Resident individuals (whether sole or joint account holders),
• Hindu Undivided Families (HUF),
• Foreign nationals residing in India*,
• and minors aged 10 years or above (who can open a self-operated account and be issued an ATM/Debit card)

*Foreign nationals must have been residing in India for more than 180 days and must hold a valid passport, visa, FRRO (Foreign Region Registration Office) Certificate, and Residential Permit.