{"id":1962,"date":"2023-04-18T08:13:40","date_gmt":"2023-04-18T08:13:40","guid":{"rendered":"https:\/\/www.trickingz.com\/?p=1962"},"modified":"2023-04-18T08:13:40","modified_gmt":"2023-04-18T08:13:40","slug":"how-much-is-the-average-interest-rate-on-savings-account-in-india","status":"publish","type":"post","link":"https:\/\/www.trickingz.com\/how-much-is-the-average-interest-rate-on-savings-account-in-india\/","title":{"rendered":"How much is the average interest rate on savings account in India?"},"content":{"rendered":"
In India, savings accounts are a popular way for individuals to save money while earning interest on their balance. While interest rates on savings accounts in India vary depending on the bank, the type of account and the amount of money deposited, the average interest rate on savings accounts in India is around 3% to 5% per annum, as of March 2023.<\/span><\/p>\n The interest rates offered by each lender vary, and customers need to compare rates and features before opening an account. However, it is important to note that interest rates can change frequently as they are dependent on various factors.<\/span><\/p>\n Factors affecting interest rates of savings accounts in India<\/b><\/p>\n <\/p>\n <\/p>\n The Reserve Bank of India (RBI) is responsible for regulating the country’s monetary policies. The RBI sets the benchmark interest rates, which affect commercial banks’ lending and deposit rates. Commercial banks adjust their savings account interest rates based on the RBI’s benchmark rates. If the RBI lowers the benchmark rate, banks will reduce their interest rates on savings accounts, and vice versa.<\/span><\/p>\n <\/p>\n <\/p>\n Inflation refers to the rate at which the general level of prices for goods and services increases. Higher inflation rates mean that the currency’s purchasing power is decreasing, and the value of the money deposited in a savings account is reduced over time. Banks tend to lower their <\/span>interest rates on savings accounts<\/span><\/a> to compensate for the loss in value. Lower inflation rates mean that the purchasing power of the currency is increasing, and the value of money deposited in a savings account is preserved. In such cases, banks tend to increase their interest rates to attract more customers.<\/span><\/p>\n <\/p>\n\n
\n