Best Savings Account Interest Rates for 2023 in India

Individuals new to banking and investing prefer savings accounts as these are an ideal option to invest in short or long term savings. is the best option for people who have a regular source of income or are salaried individuals. A lot of public and private sector banks in India offer individuals different kinds of savings account as per their needs and requirements. All banks set interest rates on their savings accounts that usually vary from 2.50% per annum to 7.00% per annum depending on the amount of savings.

Before one opens a savings account in a bank, one must be familiar with the interest rates offered by the bank and the type of savings account an individual is being offered with other facilities. Let us discuss in detail about interest rates offered by the banks:

Best Savings Account Interest Rates for Deposits up to Rs. 1 Lakh

In this category, most banks offer relatively lower interest rates to customers. However, we have segregated the best savings accounts that offer highest interest rate for deposits up to Rs. 1 Lakh below:

*Interests rates are updated on 15th March 2023.

Top Savings Account Interest Rates for Deposits from Rs. 1 Lakh to Rs. 5 Lakh

Many banks offer relatively higher interest rates on deposits from Rs. 1 Lakh and above up to Rs. 5 Lakh on the incremental balance. It is worth noting that the amount up to Rs. 5 Lakh in any bank is insured by DICGC and in case of any eventuality of default by the bank, accountholders will get their money back. Here is the list of best savings account with highest interest rates on deposits ranging between Rs. 1 Lakh to Rs. 5 Lakh:

*Interests rates are updated on 15th March 2023.

Best Savings Account Interest Rates for Deposits from Rs. 5 Lakh to Rs. 10 Lakh

This band is the highest interest earning band for accountholders of most banks. Thus, banks offer the highest interest rates on the incremental amount in the savings account. Below-mentioned is the list of top savings accounts for deposits ranging from Rs. 5 Lakh to Rs. 10 Lakh:

*Interests rates are updated on 15th March 2023.

Top Savings Account Interest Rates for Deposits from Rs. 10 Lakh to Rs. 1 Crore

Those who wish to maintain balance from Rs. 10 Lakh to Rs. 1 Crore in their savings account can choose from the below-mentioned list of top banks with highest interest rates in this range:

*Interests rates are updated on 15th March 2023.

Best Savings Account Interest Rates for Deposits above Rs. 1 Crore

Accountholders who intend to maintain huge balance in their savings account, i.e. above Rs. 1 Crore, should choose from these best savings account offering highest interest rates in this range:

*Interests rates are updated on 15th March 2023.

How to calculate interest on savings account for varying interest rates?

Various banks provide different interest rate on the amount deposited in the bank. This is done to promote people to maintain specific amount in the savings account to reap maximum benefits. Let us understand how interest rate is calculated on different deposited amount in the savings account. Below mentioned is the break-up of digibank by DBS Bank India Limited deposited for savings accounts.

Assume your daily account balance is Rs. 1 Lakh. The bank offers an interest rate of 3.25% for balances up to Rs. 1 Lakh. Then, let us assume, that you maintain balance of Rs. 4,00,000 in your savings account throughout the year. You will earn different interests for different amounts at varying interest rates. Let us assess how the interest rate will differ on different outstanding balance.

For the first Rs. 1 Lakh, you will earn an interest rate of 3.25% on Rs. 1,00,000. Thus, the interest calculated will be:

(1,00,000 x 3.25/100) = Interest earned on amount of Rs. 1,00,000 would be Rs. 3,250.

For the next Rs. 1 Lakh, the bank will provide an interest rate of 3.50 on the amount. Thus, the interest calculated will be:

(1,00,000 x 3.50/100) = Interest earned on amount of Rs. 1,00,000 would be Rs. 3,500.

For the remaining Rs. 2 Lakh, you will get interest at a rate of 4%. Thus, the interest calculated will be:

(2,00,000 x 4/100) = Interest earned on amount of Rs. 2,00,000 would be Rs. 8,000.

Thus, the total interest that you will earn by the end of the year is Rs. 14,750.  The total amount that you will have by the end of the year will be Rs. 4,14,750.