Savings Account Interest Rates 2026
Compare savings account interest rates of 26 banks — rate on ₹1 lakh and ₹10 lakh, highest slab, minimum balance and effective date.
Updated 27 September 2026 · 26 banks trackedWhat you need to know
Most large banks now pay a flat 2.50% on savings balances (SBI, HDFC Bank, ICICI Bank, Axis Bank, UCO Bank), after several cut rates in 2025. Mid-sized private and foreign banks pay much more on larger balances — IDFC FIRST Bank pays 7% on the part of the balance between ₹3 lakh and ₹25 lakh, RBL Bank 6% between ₹10 lakh and ₹7.5 crore. Interest is calculated on the daily closing balance.
Savings account rates by bank
| Bank | On ₹1 lakh | On ₹10 lakh | Highest slab | Min. balance (metro, regular) | Rates effective |
|---|---|---|---|---|---|
| IDFC FIRST BankPrivate sector | 2.50% | 5.65%effective, tiered | 7.00% | ₹10,000 or ₹25,000 AMB (by variant) | 1 Sep 2026 |
| DBS Bank IndiaForeign bank | 2.50% | 5.00% | 5.00% | ₹10,000 AMB (digibank Savings) | 24 Oct 2025 |
| Bandhan BankPrivate sector | 2.70% | 4.85% | 6.00% | ₹2,000 (Standard SB, from 1 Feb 2026; earlier ₹5,000) | 1 Aug 2026 |
| RBL BankPrivate sector | 3.00% | 4.00%effective, tiered | 6.00% | See bank page | 18 Jun 2026 |
| IndusInd BankPrivate sector | 2.50% | 3.00% | 7.05% | See bank page | 1 Mar 2026 |
| Karnataka BankPrivate sector | 2.50% | 2.75% | 4.00% | See bank page | 1 Jul 2025 |
| IDBI BankPrivate sector | 2.50% | 2.60% | 3.00% | ₹10,000 (Advantage SB, per ClearTax) | 18 Aug 2025 |
| State Bank of IndiaPublic sector | 2.50% | 2.50% | 2.50% | Nil (MAB requirement waived since Mar 2020) | 15 Jun 2025 |
| HDFC BankPrivate sector | 2.50% | 2.50% | 2.50% | ₹10,000 AMB | 24 Jun 2025 |
| ICICI BankPrivate sector | 2.50% | 2.50% | 2.50% | ₹15,000 (accounts opened from 1 Aug 2025; ₹10,000 for older accounts) | 26 Jun 2025 |
| Axis BankPrivate sector | 2.50% | 2.50% | 2.50% | ₹10,000–₹12,000 (Easy Access) | — |
| Punjab National BankPublic sector | 2.50% | 2.50% | 4.25% | ~₹2,000 (urban, earlier) | 1 Oct 2025 |
| Bank of BarodaPublic sector | 2.50% | 2.50% | 4.75% | ₹2,000 (Baroda Advantage) | 22 Aug 2025 |
| Kotak Mahindra BankPrivate sector | 2.50% | 2.50% | 2.50% | ₹25,000 AMB or ₹1 lakh relationship value (Everyday+) | 9 Jul 2025 |
| YES BankPrivate sector | 2.50% | 2.50% | 3.50% | ₹10,000 (YES PRO) | 7 Apr 2026 |
| Union Bank of IndiaPublic sector | 2.50% | 2.50% | 6.25% | See bank page | 10 Aug 2026 |
| Central Bank of IndiaPublic sector | 2.50% | 2.50% | 4.75% | See bank page | 10 May 2026 |
| Canara BankPublic sector | 2.50% | 2.50% | 4.00% | ₹2,000 (nominal; charges waived) | 5 Sep 2026 |
| Bank of IndiaPublic sector | 2.50% | 2.50% | 5.50% | ₹1,000 (SB General) | 1 May 2026 |
| Indian BankPublic sector | 2.50% | 2.50% | 2.80% | See bank page | 4 Jul 2026 |
| Indian Overseas BankPublic sector | 2.50% | 2.50% | 6.25% | ₹1,000 (with cheque) / ₹500 (non-cheque), other branches | — |
| Federal BankPrivate sector | 2.50% | 2.50%effective, tiered | 5.50% | See bank page | 16 Jul 2026 |
| UCO BankPublic sector | 2.50% | 2.50% | 2.50% | ₹1,000 (Saral, with chequebook) | 23 Jun 2025 |
| South Indian BankPrivate sector | 2.25% | 2.25% | 6.00% | See bank page | 21 Apr 2026 |
| Standard Chartered BankForeign bank | 2.25% | 2.25%effective, tiered | 5.00% | ₹10,000 AMB (SC Digital) | 1 Jan 2026 |
| Punjab & Sind BankPublic sector | 2.20% | 2.20% | 4.70% | See bank page | 16 Feb 2026 |
“Tiered” banks state that each rate applies only to the part of the balance inside that slab, so the effective rate is shown; for other banks the published slab rate is shown for the whole balance — confirm the method with the bank. The highest slab usually applies only to very large balances (crores). Sources and dates on each bank page.
How savings interest works
- Rates are set by each bank (deregulated by RBI in October 2011).
- Interest is calculated on the end-of-day balance every day and credited quarterly (monthly at some banks such as IDFC FIRST and RBL).
- Many banks use tiered slabs: each rate applies only to the part of the balance within that slab.
- There is no TDS on savings-account interest, but it is taxable.
Frequently asked questions
Which bank gives the highest savings account interest?
For a ₹10 lakh balance, IDFC FIRST Bank and RBL Bank lead among the banks we track, thanks to high-rate slabs. On small balances (₹1 lakh) most banks pay 2.5%–3%.
Is a 7% savings account safe?
It is a scheduled bank regulated by RBI and covered by DICGC up to ₹5 lakh. Higher rates usually come from banks that need deposits.
For information and comparison only. Confirm rates, charges and rules with your bank.