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What is the Interest Rate on Savings Account 2022?
Posted on Tuesday, July 26th, 2022 | By IndusInd Bank
Savings accounts are a must-have for any earning individual. They let you earn a modest interest rate on the amount kept in them and at the same time, they let you make transactions and withdrawals from the account as you please. Contrast this with fixed deposits, where the amount invested is locked-in for a certain period of time.
These characteristics make savings accounts great for purposes such as building an emergency fund, saving for education, marriage, travel, and many other financial goals that you might have. The interest earned in these account is stable and assured unlike other riskier investments such as equity.
But how much can you really expect to earn on a savings account in 2022? Let’s explore this and more in this blog.
Savings account interest rate 2022
Interest rates are a function of many different economic factors and they keep on changing depending on factors like RBI policies, economic stability, the demand and supply of loanable funds, and many other factors. At any given point in time, they also differ from bank to bank depending on the marginal cost of funds for that bank.
Today, savings account interest rates for different banks range from anywhere between 2% all the way up to 6-7%. The interest on your savings account is calculated and credited periodically (monthly/quarterly/semiannually/annually). Always make sure to enquire how frequently a savings account credits the interest earned before applying for it.
Tax implications of interest earned on savings account
Now don’t get too excited about earning high interest on your savings account because you always have to account for taxes. As per section 80TTA, any interest earned on a savings account that is greater than Rs. 10,000 is taxable as per your relevant tax slab.
So, any interest earned on a savings account up until Rs. 10,000 is tax-free. Anything after that is simply added to your taxable income and attracts taxes based on your tax slab. Always keep this in the back of your head when investing in a savings account.
How to apply for a savings account?
Now that you know how beneficial a savings account can be as an investment, let’s explore how you can actually apply for one today.
Applying for a savings account today is super easy. With IndusInd Bank, the application process is completely online and can be finished in a matter of minutes using just your PAN and Aadhar cards. Here’s how you can apply for a savings account with IndusInd Bank:
- Choose the type of account that you would like to go for. IndusInd Bank provides a range of savings accounts that you can choose from. Whether you are looking for a zero-balance savings account or one that offers premium banking privileges, we have something for everyone.
- The next step is to just apply by providing your personal details and your PAN and Aadhar card details.
- Complete a Video KYC from the comfort of your home and that’s it, you’re done.
So it really is that simple to open a savings account today and start saving for a better future for yourself and your loved ones. Start your application today right here.
Bottom Line
So a savings account is a great alternative to risky investments as it lets you earn assured returns. If you are looking to open a savings account, start your online application process today right here.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
