Indian Bank Savings Account: Interest Rate & Minimum Balance 2024

Indian Bank provides a diverse range of savings accounts tailored to meet the varying needs of investors. With an attractive interest rate hovering around 3%, customers are drawn to the bank's competitive offerings. Beyond the enticing interest rates, Indian Bank distinguishes itself by providing a host of supplementary services, including complimentary ATM transactions and net banking facilities. 

This article comprehensively delves into the Indian Bank Savings Account interest rate, meticulously exploring its features, benefits, interest rates, and diverse account types.

Indian Bank Savings Account Interest Rate

The rate of interest applicable to Indian Bank savings accounts is established on an annual basis and not monthly. Even though the interest on the savings account is calculated on the account's daily balance, the payment is done quarterly and the rate applicable is annual.

Indian Bank Savings Account Interest Rate for Senior Citizens

Indian Bank savings account interest rate for senior citizens is the same as for the general public. It varies from 2.75% to 2.90% p.a., depending on the account balance, as shown in the table above. 

Indian Bank Savings Account Minimum Balance

The minimum balance that is necessary to open and maintain your Indian Bank savings account is as follows:

• R/SU – With Cheque facility – Rs.1000/- & Without cheque facility- Rs.500/
• M/U   – With Cheque facility – Rs.2500/- & Without cheque facility – Rs.1000/-

Indian Bank Savings Account Maximum Balance

The Indian Bank savings account does not have maximum balance necessary. You can choose any savings account type that is feasible for you and not have to worry about the maximum amount you need to keep to continue your savings.

Penalty for not Maintaining Minimum Balance in Indian Bank Savings Account 

In case you are unable to maintain the minimum balance for your Indian Bank savings account, the bank will not levy any charges.

Indian Bank Savings Account Charges 

Indian Bank Savings Account Types

Here are all the different types of savings accounts offered by the Indian Bank:

IB Smart Kid 

This account is for children aged 1 day to 18 years. It has a minimum balance requirement of Rs.100 with a cheque facility or Rs.250 without a cheque facility. There is no joint account option, and the account can be converted to a regular savings bank deposit once the child attains majority.

IB Kishore - Savings Account for Minors 

Minors aged between 10 to 18 years can apply for this savings scheme. This account has no minimum balance requirement and a maximum balance of Rs.2,00,000. The account can be converted to a GenX Savings Account once the child attains majority.

SB Platinum

High-Net-worth Individuals, high-income earnings Gen-X, corporate executives and institutions and corporations are eligible to open this account. It has an average monthly minimum balance requirement of Rs.7.5 lakhs per month for individuals and Rs.10 lakhs for non-individuals.

Indian Bank – Sammaan 

Individuals over 60 years old are eligible to apply for this account. No monthly average balance is required for this account and it offers several benefits, such as free cash withdrawals at non-home branches, free account closure, and discounted bank lockers. The Indian bank savings account interest rate is up to 2.75% for senior citizens as well.

IB Mahila Shakti for Women

This account is for women customers only. It has an average monthly minimum balance requirement of Rs.1,000 and offers many benefits, such as a sweep-in facility, discounted bank lockers, an overdraft facility, and loans at lower interest rates.

Indian Bank Salaam 

Applicable for personnel from the Public Defence Services. These types of accounts have no monthly average balance requirement and offer many benefits, such as loans at lower interest rates, free demat and trading accounts for one year, and discounted bank lockers.

Indian Bank GenX: 

This type of account is for individuals aged 18 to 40 years. The average monthly minimum balance requirement of this account is Rs.1,000 and offers benefits, such as health insurance at concession rates, loans at lower interest rates, and free demat and trading accounts for one year.

Savings Bank Account for Pensioners 

This account is for pensioners of State, Central and EPF categories. It has no monthly average balance requirement and offers several benefits, such as free internet and mobile banking facilities, and free account closure.

IB DIGI Online SB Account 

It is a digital account for resident individuals above 18 years old. You can apply for this account, but remember it has several restrictions, such as a maximum withdrawal of Rs.10,000 per day at bank branches and other ATMs.

Small Account

The Indian bank savings account interest rate of this account is 2.75%. This account is for individuals who have to submit a National Rural Employment Guarantee Act (NREGA) job card. Keep in mind the restrictions, such as transactions only through withdrawal slips, a maximum balance of Rs.50,000, and a maximum withdrawal of Rs.10,000 per month.

SB for Students under Government Scholarship and SB for Direct Benefit Transfer 

This account is for students who receive a scholarship under government schemes or are beneficiaries under various central and state government-sponsored schemes. No initial deposit or monthly average balance is required for this type of savings account.

IB Corp SB - Payroll Package Scheme for Salaried Class 

This account is for employees of corporate firms. It has no initial deposit or monthly average balance requirement and offers some great benefits, such as unlimited withdrawals, an overdraft facility, discounted bank lockers for the first year, personal accident insurance, and concession on loans.

How to Open a Savings Account in the Indian Bank?

To avail Indian bank savings account interest rate, you need to initiate the following process of opening an Indian Bank SB Account through online channels:

• Navigate to the official website of the Indian Bank to commence the account opening process.
• Select the 'Apply Now' option found within the 'Savings Account' section on the website.
• Fill in the required details such as your name, contact number, date of birth, and address in the provided application form.
• Click on the 'Submit' button to send your completed application for processing.
• Ensure that the details of essential documents like PAN and Aadhar are accurate. Verify the accuracy of the submitted documents to facilitate a smooth application process.
• An Indian Bank executive will review and verify all the documents submitted as part of the application
• Once the account is activated, you will have the opportunity to register your mobile number for additional banking services.
• With the activation of your account, you can immediately start using the provided debit card and cheque book for various banking transactions.

Documents Required for Opening Savings Account in Indian Bank

When opening a savings account with Indian Bank, it is imperative to provide the requisite KYC (Know Your Customer) documents, as is standard for any savings account. In addition to furnishing recent photographs and completing the account opening form, the following documents are essential:

• Proof of Address:
  • Utility bills (water, electricity, and phone)
  • Ration card
  • Bank account statement
  • Credit card statement
  • Wealth or income tax assessment order
  • Voter ID
• Proof of Identity:
  • Aadhaar Card
  • Passport
  • PAN card
  • Voter’s Identity Card
  • Driving licence
  • Job card issued by NREGA duly signed by a State Government officer (For Small Accounts)
  • Letter from UIDAI containing details of name, address, and Aadhaar number
  • Identity card (subject to the bank’s satisfaction)
  • Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the bank's satisfaction.
  • Government/Defence ID card
  • ID cards of reputable Public Sector Employers

How to Close an Indian Bank Savings Account?

To close your savings account at Indian Bank, you need to follow the below steps:

Step 1: Fill out the Indian Bank Account Closure Form

Begin the account closure process by completing the official Account Closure Form provided by Indian Bank. This form can be downloaded from the bank's website or obtained directly from your home branch. Ensure that all relevant details are accurately filled in, and the form is signed. If there are joint account holders, each one must sign the closure form.

Step 2: Attach KYC Documents

All account holders must attach copies of their KYC documents, including a PAN card serving as proof of identity and proof of address, to the account closure form. Self-attestation of these documents may be required.

Step 3: Surrender Balance Cheque Leaves, Debit Card, and Passbook

Surrender any remaining balance cheque leaves, your debit card, and the passbook associated with the account at your bank branch. The processing of your account closure request is initiated only after these items are surrendered.

Step 4: Processing of Account Closure Request

The bank verifies the submitted documents, and upon confirming their accuracy, requests you to withdraw the remaining balance in the account to facilitate the closure process.

Step 5: Withdraw the Remaining Balance

Upon request, you can opt for cash withdrawal, or the bank may issue a cheque/DD in your favour. Alternatively, the remaining balance can be transferred to another account to finalise the closure of your savings account.

Indian Bank Savings Account Features

Here is a list of the most important features of the savings account at Indian Bank.

• Cheque Operations: Account holders enjoy 20 free cheque leaves per calendar year for cheque-operated Savings Bank accounts. The bank provides personalised chequebooks as per the requirements of the account holder.
• ATM/Debit Card: Rupay ATM cards/ Debit cards are provided free of cost to account holders.
• Withdrawals: Account holders can make up to 50 free withdrawals in the first six months per year, providing flexibility for regular transactions.
• Electronic Fund Transfers: ECS/RTGS/NEFT facilities are available for seamless electronic transactions.
• Additional Services: Demat, Locker, and Credit card facilities are available for added convenience.
• Value Additions: No tax deducted at source (TDS) on interest earned, offering a tax benefit to account holders.
• Interest Rate: Interest is calculated on a daily product basis for each financial quarter.   
• Service Charges: Service charges are applicable as per the latest notification.

Indian Bank Savings Account Benefits

The Indian Bank savings account offers a range of benefits to eligible individuals and entities. The account can be opened by Indian citizens aged 18 and above, as well as by societies, clubs, trusts, educational institutions, government bodies, etc. Here are some benefits of the savings account to look for.

• Minimum Balance Requirements

If you are applying for an account without a chequebook, a minimum balance of Rs. 500 is required. For an account with a chequebook, the minimum balance is slightly higher at Rs. 1000. Bonafide students and pensioners may have the flexibility of a lower minimum balance.

• Initial Deposit

No initial deposit is required, making it accessible for individuals who may not have a significant amount to start with.

• Nomination Facility:

A nomination facility is available, providing account holders the option to nominate a beneficiary.

• Digital Banking:

Free internet banking, SMS alerts, and mobile banking services are provided, enhancing the account's accessibility and convenience.

• Outstation Cheque Facility:

An outstation cheque facility is available, allowing account holders to transact seamlessly across locations.

Being one of the best banks in the country, Indian Bank offers the best facilities and features to their different account holders. Indian Bank SB account interest rate is among the most competitive interest rates available in the market. If the account holders get consistent interest rates, it assures them of investing their money regularly. Opening a savings account with Indian Bank is hassle-free and it can save and help your money to grow gradually.

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