Which bank is safest in India?

Short Answer

You can choose any bank in India to open an account in, be it a private-sector bank or a public-sector bank. By the market share SBI, HDFC, and ICICI Bank are the three top banks that can be considered when looking at the largest banks in India.

Detailed Answer

What type of bank accounts are available in India?

A bank account is a kind of safe-house for your money, using which you can store, transact and transfer money. A bank account helps you to undertake any kind of financial transaction online as well as offline. You get many benefits with a bank account such as a cash withdrawal facility from an ATM, online transaction benefit, and additional interest on your money.

There are many bank account that you can open in India. The most common type of bank account is the Savings bank account. The next common account is the Current account which is broadly used by companies and businessmen.

There are both private as well as public sector banks that provide banking facilities to the common public. You can go ahead and open an account with any of the banks in India.

Which is the safest bank in India?

First of all, all the commercial and public banks can be considered safe as they are regulated and monitored by the Central Bank or the RBI (Reserve Bank of India). Public-sector banks can be considered a bit safer than private banks as a majority stake in the banks is owned by the Indian Government.

On the other hand, private banks or commercial banks are equally safe as they are all insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation). Under this, up to 5 lakh rupees of your money, deposited in the bank insured by the DICGC. If the bank undergoes liquidation or if the banking license is cancelled, you will get up to Rs 5,00,000 under the insurance.

The Biggest Banks in India

Although there are many banks in India, some of the biggest banks in the terms of total customers, deposits, etc. are HDFC Bank, SBI, ICICI Bank.

These three banks can be considered the safest banks in India as they are the largest among the competitions. SBI or State Bank of India is the largest government bank in India with an overall market share of 23.9% in terms of deposits.

On the other hand, the next contender is HDFC Bank with an overall market share of 8.5%, followed by ICICI Bank at 5.7%.

This metric can be considered when deciding on a bank to open an account with. There are other parameters that you have to look at in order to choose a bank account. One of the things to look at is the interest rate as well as the lending rate. These two things are important to consider when considering a bank account.

Best Bank in India

For a savings account, you can consider any bank public or private which provides good interest rates. One might have safety concerns like Yes Bank but incidents like that don’t happen suddenly. Therefore, you will have sufficient time to pull out your money and transfer it to a different bank account at the signs of distress. Apart from that you can remain assured your money up to Rs 5,00,000 is insured which will be returned back to you by DICGC in case the bank fails.

Tagged With: savings accountpublic sector bankcommercial banksprivate bankscentral bankcurrent account
Categories: Finance
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Related FAQs

How much money do you need to open a savings bank account in India?

To open a savings bank account in a private bank, you will have to make an initial deposit of around Rs 5,000 to Rs 10,000. However, there are some public-sector banks and other online banks where you can open your account without any deposit and get all the banking facilities.

Which is best bank to open Savings account in India?

Looking into the interest rates, minimum savings required in the account, easy online facilities are few of the many options you should consider while choosing a savings account with any respective bank.

What do you need to open a savings bank account in India?

To open a savings bank account in your chosen bank, you will need identity proof, address proof, and a recent photograph. Documents like PAN Card, Aadhaar Card, Passport among others will be needed in the account opening process.

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

Can I apply in an IPO from my current bank account?

There is no provision for users to apply for an IPO through a current account. They would have to choose a savings account to get an IPO applciation processed further.

How much money can we keep in savings account in India?

Savings bank account is one of the most popular banking services. There is no maximum amount of money that needs to be maintained. A person is liable to keep any amount of money in the savings bank account.

Can one apply an IPO from sweep in/out saving bank account?

There is no possibility of a user having a sweep in/out account linked to their IPO application. It would simply get rejected.

Can I apply IPO in name of family members & friends from my saving bank account?

Yes, you can apply for an IPO application for your family and friends through your savings bank account details. However, keep in mind that only five applications can be filled with the same bank account details.

Can I open 2 demat accounts with the same bank account?

Absolutely, you can open two or more demat accounts with one single bank account. You can, later on, add other bank accounts to your demat account as per your requirements.

How to activate dormant or inoperative account in India?

To activate such accounts, you will have to write to the bank and get it active once again. It should take at least 2-3 businesses days for the entire procedure to be completed form when the letter is submitted to getting it reactivated.