Savings accounts are a popular choice for individuals new to banking and investing, offering a flexible option for both short and long-term savings. They are especially suited for those with a regular income, such as salaried individuals.
In India, many private and public sector banks provide various types of savings accounts tailored to meet different needs. Interest rates on savings accounts typically range from 2.50% p.a. to 7.50% p.a. depending on the balance maintained.
Before opening a savings account, it's essential to understand the interest rates offered and the specific account features provided by the bank. In this guide, we’ve listed the latest savings account interest rates in 2025, compared across different banks, so you can easily find the one that works best for your needs.
In this segment, many banks tend to offer lower interest rates. However, we've identified the top savings accounts that provide the highest interest rates for deposits up to Rs. 1 lakh, listed below:
List of Banks | Interest Rates (p.a) |
2.75% | |
ESAF Small Finance Bank Limited | 3.00% |
3.00% | |
Induslnd Bank | 2.50% |
Jana Small Finance Bank | 2.50% |
RBL Bank Limited | 3.00% |
Suryoday Small Finance Bank | 2.50% |
Utkarsh Small Finance Bank Limited | 3.25% |
YES Bank | 2.50% |
Note: The rate of interest is updated by the bank on a regular basis and this list is updated as of 13 August 2025.
Savings Account Rate of Interest for Deposits Between Rs. 1 lakh to Rs. 5 lakh
Many banks offer competitive interest rates on deposits ranging from Rs. 1 lakh to Rs. 5 lakh on the incremental balance. It's important to note that deposits up to Rs. 5 lakh in any bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). In the event of a bank default, accountholders are protected up to this limit. Below are some banks offering the highest interest rates on deposits within this range:
List of Banks | Interest Rates (p.a.) |
AU Small Finance Bank | 5.11% (On balances above Rs.1 lakh and up to Rs. 2 lakh) 3.00% (On balances above Rs.3 lakh and up to Rs.5 lakh |
Bandhan Bank | 2.80% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
DBS Bank | 2.75% (On balances up to Rs.2 lakh) |
Equitas Small Finance Bank | 3.50% (On balances above Rs.2 lakh and up to Rs.5 lakh) |
ESAF Small Finance Bank limited | 5.50% (On balances above Rs.2 lakh up to Rs.5 lakh) |
Induslnd Bank | 3.00% (On balances above Rs.1 lakh up to Rs.10 lakh) |
Jana Small Finance Bank | 3.50% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
RBL Bank | 3.00% (On balances above Rs.3 lakh and up to Rs.5 lakh |
Suryoday Small Finance Bank | 4.00% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
Ujjivan Small Finance Bank Limited | 3.50% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
Utkarsh Small Finance Bank | 5.00% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
YES Bank | 3.00% (On balances above Rs.1 lakh up to Rs.10 lakh) |
Note: The rate of interest is updated by the bank on a regular basis and this list is updated as of 13 August 2025.
Savings Account Rate of Interest for Deposits Between Rs. 5 lakh to Rs. 10 lakh
For deposits within the Rs. 5 lakh to Rs. 10 lakh range, most banks offer their highest interest rates on the incremental balance. Here is a list of top savings accounts offering attractive interest rates for deposits within this range:
List of Banks | Interest Rates (p.a.) |
AU Small Finance Bank | 4.00% (On balances above Rs.5 lakhs to less than Rs.10 lakh) |
Bandhan Bank | 4.80% (On balances above Rs.5 lakh and up to Rs.10 lakh) |
DBS Bank | 5.50% (On balances above Rs.5 lakh and up to Rs.50 lakh) |
DCB Bank | 3.75% |
Equitas Small Finance Bank | 4.50% (On balances above Rs.5 lakh and up to Rs.10 lakh) |
ESAF Small Finance Bank Limited | 6.00% (On balances above Rs.5 lakh to Rs.15 lakh) |
Induslnd Bank | 3.50% (On balances above Rs.10 lakh to Rs.25 lakh) |
Jana Small Finance Bank | 4.50% |
RBL Bank | 5.00% (On balances above Rs.1 lakh and up to Rs.10 lakh) |
Suryoday Small Finance Bank Limited | 7.25% |
Ujjivan Small Finance Bank | 6.00% (On balances above Rs.5 lakh and up to Rs.10 lakh) |
Utkarsh Small Finance Bank | 6.00% (On balances above Rs.5 lakh and up to Rs.10 lakh) |
Yes Bank | 3.50% (On balances above Rs.10 lakh to less than Rs.25 lakh) |
Note: The rate of interest is updated by the bank on a regular basis and this list is updated as of 13 August 2025.
Savings Account Rate of Interest for Deposits from Rs. 10 lakh to Rs. 1 crore
For those maintaining balances between Rs. 10 lakh and Rs. 1 crore, several banks offer attractive interest rates. Here's a list of the top banks providing the highest interest rates in this range:
List of Banks | Interest Rates (p.a.) |
AU Small Finance Bank | 6.50% (On balances above Rs.10 lakh to less than Rs.25 lakh) |
DCB Bank | 5.75% (On balances above Rs.10 lakh and up to Rs.25 lakh) 7.00% (On balances above Rs.25 lakh and up to Rs.50 lakh) 7.15% (On balances above Rs.50 lakh and up to Rs.1 crore) |
ESAF Small Finance Bank | 6.50% (On balances above Rs.15 lakh and up to Rs.1 crore) 6.00% (On balances above Rs.10 lakh and up to Rs.25 lakh) |
Induslnd Bank | 4.00% (On balances above Rs.25 lakh up to Rs.1 Crore) |
Jana Small Finance Bank | 6.75% (On balances above Rs.10 lakh and up to Rs.50 lakh) 7.00% (On balances above Rs.50 lakh up to Rs.10 crore) |
RBL Bank | 6.75% (On balances above Rs.25 lakh and up to Rs.3 crore) |
SBM Bank India | 7.25% (On balances above Rs.50 lakh and up to Rs.3 crore) |
Suryoday Small Finance Bank | 7.50% (On balances above Rs.10 lakh and up to Rs.2 crore) |
Ujjivan Small Finance Bank | 7.00% (On balances above Rs.10 lakh and up to Rs. 50 lakh) 7.25% (On balances above Rs.50 lakh) |
Utkarsh Small Finance Bank | 7.25% (On balances above Rs.10 lakh and up to Rs.10 crore) |
Note: The rate of interest is updated by the bank on a regular basis and this list is updated as of 13 August 2025.
Savings Account Rate of Interest for Deposits Above Rs. 1 crore
For account holders looking to maintain a balance exceeding Rs. 1 crore, here are the banks offering the highest interest rates in this range:
List of Banks | Interest Rates (p.a.) |
AU Small Finance Bank | 6.75% (On balances above Rs.25 lakh to less than Rs.1 crore) |
Bandhan Bank | 5.80% (On balances above Rs.10 crore and up to Rs.5 crore) |
DCB Bank | 7.20% (On balances above Rs.1 crore and to less than Rs.2 crore) |
Equitas Small Finance Bank | 7.00% (On balances above Rs.10 lakh and up to Rs.25 crore) 7.25% (On balances above Rs. 25 crore) |
ESAF Small Finance Bank | 7.00% (On balances above Rs.1 crore and up to Rs.15 crore) 7.50% (On balances above Rs.15 crore and up to Rs.50 crore) |
Induslnd Bank | 5.00% (On balances above Rs.1 crore up to Rs.5 crore) |
Jana Small Finance Bank | 7.50% (On balances above Rs.10 lakh and up to Rs.10 crore) 7.00% (On balances above Rs.10 crore and up to Rs.20 crore) |
RBL Bank | 5.50% (On balances above 7.5 crore up to Rs. 200 crore) |
SBM Bank India | 7.25% (On balances above Rs.50 lakh and up to Rs.3 crore) 7.50% (On balances above Rs.3 crore and up to Rs.25 crore) |
Shivalik Small Finance Bank | 7.00% (On balances above Rs.50 lakh and up to Rs.5 crore) |
Suryoday Small Finance Bank | 7.50% (On balances above Rs. 2 crore up to Rs.5 crore) |
Utkarsh Small Finance Bank | 7.50% (On balances above Rs.5 lakh and up to Rs.50 crore) 7.50% (On balances above Rs.10 crore up to Rs.100 crore) |
YES Bank | 5.00% (On balances above Rs.50 lakh an above and to less than Rs.100 crore) |
Note: The rate of interest is updated by the bank on a regular basis and this list is updated as of 13 August 2025.
Savings Accounts Rate of Interest for Deposits up to Rs. 5 lakh
When opening a savings account, individuals often prioritise liquidity and the interest rate on their deposits. Unlike fixed deposits or mutual funds, where funds are locked for a specific period, savings accounts provide easy access to your money. Several banks offer high interest rates on savings accounts for balances up to Rs. 5 lakh. Here are some top options:
List of Banks | Interest Rates (p.a.) |
AU Small Finance Bank | 3.00% (On balances up to Rs.3 lakh) 2.75% (On balances less than Rs.3 lakh) |
Jana Small Finance Bank | 2.50% (On balances up to Rs.1 lakh 3.50% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
Suryoday Small Finance Bank | 2.50% (On balances up to Rs.1 lakh) 4.00% (On balances above 1 Rs. lakh and up to Rs.5 lakh) |
Utkarsh Small Finance Bank | 4.00% (On balances up to Rs.1 lakh) 5.00% (On balances above Rs.1 lakh and up to Rs.5 lakh) |
Banks often offer lower interest rates for deposits up to Rs. 1 lakh, while higher rates are applied to balances above that threshold, up to a certain limit.
Note: The rate of interest is updated by the bank on a regular basis and this list is updated as of 13 August 2025.
Savings Account is one of the basic financial products that everyone must have and use. A savings account will let you save money, transfer funds, withdraw money and give you interest on the funds you have in your account. Not many investment products on the market give you the dual benefit of liquidity and interest. But, a savings account will not only help you save some money but will also let you withdraw cash whenever you need it.
Depositing money in a savings account will help you realize your short-term financial goals with ease. With banks offering different types of savings accounts, such as such as kids' savings accounts, savings account for women and pensioners savings accounts, you can choose a savings account that fits your lifestyle and usage.
One of the key points to note about a savings account is its interest rate. Read on to find out more about how savings account interest rate is calculated and savings account interest rates for major Indian banks.
As per the new RBI mandate, bank interest rates on savings account are calculated on a daily basis based on your closing amount. The interest accumulated will be credited to your account on a half-yearly basis or quarterly basis depending on the savings account type and the bank's rule. However, recently, the Reserve Bank of India has advised the banks to credit the interest on the Savings Bank account on a quarterly basis as it will be more beneficial to the customers.
Generally, the formula described below is used to calculate the monthly interest for a general savings account:
Monthly Interest = Daily Balance * (Number of days) * Interest / (Days in the year)
Assuming the daily balance is Rs.3 lakh and the interest on a savings account is 4% p.a. the calculation will work out as follows.
Monthly Interest = 3 lakh * 30 * (4/100) / 365 = Rs.986
The interest amount that you gain from a savings account is referred to as "Income from Other Sources". This interest must be filed for Income Tax Returns. But, TDS is not applicable to a savings account as per section 194 A of the IT Act.
Savings Bank Account Interest amount exceeding Rs. 10, 000 will be taxed at a marginal tax rate of the concerned account holder. It is also important to note that interest from a savings account is not an exemption but a deduction.
The deduction is allowed for interest incomes up to Rs. 10,000 only and for this purpose, the savings account must be held with a recognised public or private bank or the Post Office.
There are countless benefits that a savings account will offer you. Here are some of the major advantages of maintaining a savings account:
If you read the fine print for a savings account, you will come across "Minimum Average Balance Requirements". Many banks use the terms minimum daily balance, minimum quarterly balance or just minimum balance. Average Balance means the amount that has to be maintained in your savings account over a certain period of time. The average balance is calculated by summing up the everyday balance and dividing it by the number of days in the defined period.
For example, if a savings bank account has an average quarterly balance of Rs.3,000, the average daily balance in your account for that quarter should have been Rs.3,000. Instead, you can also have Rs.5,40,000 as the balance for one day of that quarter.
If you do not maintain the specified balance requirements, you will have to pay a non-maintenance penalty.
Almost all major Indian banks now offer Basic Savings Bank Deposit Account (BSBDA) which is a zero balance account. No penalty will be levied and you can use your BSBDA account as a normal savings account.
A Savings Account Interest Rate Calculator will let you find out the interest that you will get from a savings account. In a Savings Account Interest Rate Calculator, you will be required to enter information like average balance and interest rate offered by the bank. You will also be required to select if the interest will be credited on a monthly, quarterly, half-yearly or yearly basis. The calculator will output the interest that you will get for the daily balance and the savings account interest rate.
GST of 18% is applicable to all banking products and services from July 1, 2017 onwards.
A savings account is a deposit account held at banks/financial institutions and offers a favourable interest rate, principal security, and a high level of liquidity. It is regarded as one of the most liquid assets.
Some of the factors you must consider when selecting a savings account are interest rate, minimum balance, branch availability, and customer support.
No, banks do not impose any age, income, or other requirements to open a basic savings account. However, the minimum balance requirements may differ depending on the type of savings account.
As per the RBI guidelines, banks cannot impose penalties if you do not maintain the required balance in a dormant account. For operating accounts with a balance less than the stipulated minimum balance level for the account type, the bank can levy a non-maintenance fee along with the applicable Education Cess and Service Tax. These fees are not imposed by all banks or account types.
The minimum balance required to create a savings account varies from one bank to another. It typically ranges between Rs.0 and Rs.25,000 for regular customers and may touch Rs.2 lakh or even more for premium customers.
There are primarily three different types of accounts depending on the minimum balance requirements. The account types are Classic, Gold, and Platinum with minimum balance amount are Rs.10,000; Rs.10,000 to Rs.25,000; and more than Rs.25,000 (Between Rs.50,000 to Rs.1 lakh, approx).
Usually, the interest on savings accounts is computed at a rate of 4%-7% per year.
You can fund your savings account with cash, bank draft, or cheque. You can deposit cheques and drafts at the bank's designated drop box locations. You can also deposit cash at specific ATM machines that accept deposits or at the bank's cash counter.
Many banks offer fee waivers when opening a savings account and a fixed deposit together. Furthermore, some banks even waive the minimum balance limit for your savings account.
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