New Delhi: The Indian Post Office, apart from providing postal services, also offers a variety of banking services. Customers can open different types of accounts, including savings accounts, time deposit (TD) accounts, recurring deposit (RD) accounts, Public Provident Fund (PPF), and Kisan Vikas Patra (KVP). When it comes to offering high returns on savings schemes, the Post Office surpasses many leading banks in India. Whether it’s a fixed deposit (FD) account or a savings account, the Post Office is currently offering higher interest rates than most banks. This is why Post Office customers are enjoying significant financial benefits.
Which Savings Account Offers the Highest Interest?
The interest rate offered by the Post Office on savings accounts is significantly higher than that of banks like State Bank of India (SBI), Bank of Baroda (BOB), and Punjab National Bank (PNB). The Post Office provides an annual interest rate of 4% on its savings accounts. Surprisingly, no major bank offers such a high rate on savings accounts.
For comparison, SBI, India’s largest public sector bank, offers only 2.70% interest on savings accounts. Similarly, PNB provides 2.70% interest on deposits up to ₹10 lakh, while amounts exceeding ₹10 lakh earn 2.75% interest.
Private Banks Like HDFC and ICICI Also Lag Behind
Even private banks are offering lower interest rates than the Post Office. Bank of Baroda, another government bank, provides just 2.75% interest on savings accounts.
Among private sector banks, HDFC Bank offers 3.00% interest on deposits up to ₹50 lakh and 3.50% on deposits exceeding ₹50 lakh. Similarly, ICICI Bank follows the same structure, offering 3.00% interest for deposits up to ₹50 lakh and 3.50% for deposits above ₹50 lakh.
In contrast, the Post Office provides a uniform 4% interest rate to all customers, irrespective of their account balance—whether it is ₹500 or ₹50 lakh.
With such competitive interest rates, the Post Office savings account has emerged as a better option for customers looking to maximize their returns on savings.