Looking to invest in fixed deposits (FDs) for fixed and secured returns? However, are concerned about liquidity, taxability and other issues associated with FDs? Here's good news for you. These days you can get secured and good returns not only on bank FDs, but even on some savings accounts offered by some banks, which are comparable to the FD rates. For instance, Axis Bank is offering 7.1% interest on its Axis ASAP account, while Yes Bank is offering 6% on one of its savings accounts. Kotak Mahindra Bank is another bank which is offering up to 6% interest on one of its zero balance savings accounts, called Kotak 811. Financial experts say that savings accounts offering higher interest rates can be an excellent instrument for parking your emergency fund and surplus money for a short-term horizon. Compared to fixed deposits, these accounts offer instant liquidity without any premature penalty. Moreover, they are also more tax-friendly than fixed deposits as savings account interest income of up to Rs 10,000 per financial year is tax-free under Section 80TTA. Also Read:\u00a0How fixed deposits are taxed in India; Here\u2019s all you need to know \u201cSome of these high-yield savings accounts also allow instant online account opening through Aadhar-based e-KYC. However, account holders should keep in mind that interest rates quoted by such banks are usually the highest slab rates, which become applicable only after exceeding a pre-determined limit. Additionally, some of these high interest yield savings accounts have restrictions on issuance of cheque books, debit cards and other important banking services,\u201d says Sahil Arora, Business Head - Payment Products, Paisabazaar.com. Whatever be the case, if you are looking for a high-yield savings account, then here are a few options: Savings A\/c Product Name Interest rate Axis Bank ASAP Up to Rs 10,000: 3.5% Balances above Rs 10,000 automatically become FDs @ 7.1% Kotak Bank 811 Up to Rs 1 lakh: 5% Above Rs 1 lakh & up to Rs 1 crore: 6% Above Rs 1 crore: 5.5% DBS Bank digibank Up to Rs 1 lakh: 6% Above Rs 1 lakh & up to Rs 2 lakh: 7% Above Rs 2 lakh & up to Rs 5 lakh: 5% Above Rs 5 lakh: 4% IndusInd Bank Privilege Active Up to Rs 10 lakh: 4% Above Rs 10 lakh & up to Rs 1 crore: 5% Above Rs 1 crore & up to 10 crore: 5.5% Above Rs 10 crore: 6% Yes Bank Insta Online Savings A\/c Less than Rs 1 lakh: 5% Rs 1 lakh to less than Rs 1 crore: 6% Rs 1 crore and above: 6.25% Source: www.paisabazaar.com However, before opting for such a savings account, it is in your own interest to read all the terms and conditions carefully, and follow the given instructions. Otherwise you would end up getting lower returns than promised.