Banks are now free to choose different interest rate for saving account

Banks are now free to choose different interest rate for saving account holder. Earlier there is a fix interest rate of 4% per annum for the saving account holder. Now RBI has empowered the banks to choose different interest rates to the different types of accounts.

RBI guides the banks to give similar interest to the accounts which have the bank deposits upto 1 lakh. if the deposit is more, banks can offer some good interest rate subject to same interest rate for the same type of account as there should be no dissimilarity to the person to person.

This facility is for residents of India only. There is no change in the saving account interest rate which is 4% per annum as continue. Banks can offer more interest but not less than 4% to any account holder.