Savings Account Interest Rates of Top Banks
| Bank | Interest Rate (Below ₹ 1 lakh) |
| DBS | 6.0% |
| Kotak Mahindra Bank | 5.0% |
| IDFC Bank | 4.0% |
| IndusInd Bank | 4.0% |
| Yes Bank | 5.0% |
| Axis Bank | 3.5% |
| ICICI Bank | 3.5% |
| SBI | 3.5% |
| HDFC Bank | 3.5% |
| PNB | 3.5% |
| Union Bank of India | 3.5% |
| Canara Bank | 3.5% |
| Indian Bank | 4.0% |
| Bank of India | 3.5% |
| Ujjivan Small Finance Bank | 4.0% |
| Bandhan Bank | 4.0% |
| RBL Bank | 5.5% |
| Standard Chartered Bank | 3.5% |
| Bank of Baroda | 3.5% |
| Allahabad Bank | 3.5% |
| Andhra Bank | 3.5% |
| United Bank of India | 3.5% |
| Central Bank of India | 3.5% |
* Data as on 9th August 2018
The interest rate on savings account was deregulated by the RBI in 2011. Shopping around for a good savings account can make a huge difference to the interest you get. Have a look at the table below:
Detailed Interest Rate Table
DBS
| Bank | Account Name | Interest Rate |
| DBS | digiSavings | Up to ₹ 1 lakh – 6% |
| ₹ 1 lakh – ₹ 2 lakhs – 7% | ||
| ₹ 2 lakhs – ₹ 5 lakhs – 5% | ||
| Above ₹ 5 lakhs – 4% |
Kotak Mahindra Bank
| Bank | Account Name | Interest Rate |
| Kotak Mahindra Bank | 811 Limited KYC 811 Lite 811 Full KYC Account 811 EDGE | Up to ₹ 1 lakh – 5% |
| ₹ 1 lakh – ₹ 1 crore – 6% | ||
| Above ₹ 1 crore – 5.5% |
IDFC Bank
| Bank | Account Name | Interest Rate |
| IDFC Bank | Savings Account | 4% |
IndusInd Bank
| Bank | Account Name | Interest Rate |
| IndusInd Bank | Indus Exclusive Indus Select Indus Maxima Indus Privilege & more | Up to ₹ 10 lakhs – 4% |
| ₹ 10 lakhs – ₹ 1 crore – 5% | ||
| ₹ 1 crore – ₹ 10 crores – 5.5% | ||
| Above ₹ 10 crores – 6% |
Yes Bank
| Bank | Account Name | Interest Rate |
| Yes Bank | Savings Value Smart Salary Platinum Smart Salary Exclusive Customizable Savings Account | Less than ₹ 1 lakh – 5% |
| ₹ 1 lakh – ₹ 1 crore – 6% | ||
| Above ₹ 1 crore – 6.25% |
Axis Bank
| Bank | Account Name | Interest Rate |
| Axis Bank | ASAP Easy Access Priority and more | Less than ₹ 50 lakhs – 3.5% |
| ₹ 50 lakhs – ₹ 100 crores – 4% | ||
| Above ₹ 100 crores – 6% |
ICICI Bank
| Bank | Account Name | Interest Rate |
| ICICI Bank | Regular Titanium Privilege Advantage Woman and more | Below ₹ 50 lakhs – 3.5% |
| ₹ 50 lakhs and above – 4% |
SBI
| Bank | Account Name | Interest Rate |
| SBI | Insta Savings Savings Plus Digital Savings and more | Up to ₹ 1 crore – 3.5% |
| Above ₹ 1 crore – 4% |
HDFC Bank
| Bank | Account Name | Interest Rate |
| HDFC Bank | Regular SavingsMax Woman’s and more | Below ₹ 50 lakhs – 3.5% |
| ₹ 50 lakhs and above – 4% |
PNB
| Bank | Account Name | Interest Rate |
| PNB | Savings Deposit Premium Savings PNB Power Savings and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Union Bank of India
| Bank | Account Name | Interest Rate |
| Union Bank of India | Regular Family Savings Flexi and more | Up to ₹ 25 lakhs – 3.5% |
| Above ₹ 25 lakhs – 4% |
Canara Bank
| Bank | Account Name | Interest Rate |
| Canara Bank | Basic Savings Deposit Small Savings Jeevandhara and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Indian Bank
| Bank | Account Name | Interest Rate |
| Indian Bank | Savings Account Savings Bank Vikas Khata IB Smart Kid and more | 4% |
Bank of India
| Bank | Account Name | Interest Rate |
| Bank of India | BOI Savings Plus Account BOI Star Mahila BOI Star Yuva and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Ujjivan Small Finance Bank
| Bank | Account Name | Interest Rate |
| Ujjivan Small Finance Bank | Regular Senior Citizen BSBDA Minor Account & more | Up to ₹ 5 lakhs – 4% |
| ₹ 5 lakhs – ₹ 50 lakhs – 5.5% | ||
| ₹ 50 lakhs – ₹ 5 crores – 6.75% | ||
| Above ₹ 5 crores – 7% |
Bandhan Bank
| Bank | Account Name | Interest Rate |
| Bandhan Bank | Premium Advantage Standard and more | Less than ₹ 1 lakh – 4% |
| ₹ 1 lakh – ₹ 10 crores – 6% | ||
| Above ₹ 10 crores – 6.55% |
RBL Bank
| Bank | Account Name | Interest Rate |
| RBL Bank | Digital Prime Edge Advantage and more | Up to ₹ 1 lakh – 5.5% |
| ₹ 1 lakh – ₹ 10 lakhs – 6% | ||
| ₹ 10 lakhs – ₹ 5 crores – 6.5% |
Standard Chartered Bank
| Bank | Account Name | Interest Rate |
| Standard Chartered Bank | SC Digital aXcessPlus SuperValue and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Bank of Baroda
| Bank | Account Name | Interest Rate |
| Bank of Baroda | Basic Savings Account Baroda Bachat Mitra Baroda Centenary SA and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Allahabad Bank
| Bank | Account Name | Interest Rate |
| Allahabad Bank | Normal Savings Three in One Shakti and more | Below ₹ 40 lakhs – 3.5% |
| ₹ 40 lakhs and above – 4% |
Andhra Bank
| Bank | Account Name | Interest Rate |
| Andhra Bank | Platinum Abhaya Diamond and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
United Bank of India
| Bank | Account Name | Interest Rate |
| United Bank of India | Savings Bank United Children Savings Bank Account and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Central Bank of India
| Bank | Account Name | Interest Rate |
| Central Bank of India | Home Safe Cent Premium Cent Param and more | Up to ₹ 50 lakhs – 3.5% |
| Above ₹ 50 lakhs – 4% |
Eligibility for a Savings Account:
- The applicant should be a resident Indian.
- Foreigners and HUFs can also open certain bank accounts by providing valid documents
- Applicants below 18 years of age can open minor accounts
- Applicants above 60 years of age can open senior citizen accounts
Tax on Savings Account Interests
Interest earned on a savings account above ₹ 10,000 is liable to be taxed as per the slab an account holder falls into. It has to be mentioned as “Income from Other Sources” at the time of filing the ITR. As per section 80 TTA of the Income Tax Act, 1961, interest earned from all savings accounts is exempt from being taxed if total interest amount is up to ₹ 10,000. However, only individuals and HUFs get the relief under this section. It is noteworthy that TDS is not deducted on savings bank account interest under Section 194A of the Income Tax Act.
Savings Account Interest Rate Calculation
Earlier, the interest rate was calculated on the lowest balance available between 10th and last day of the month at a rate of 4% p.a. However, at present, banks calculate interest on savings accounts on the daily closing balance. The interest is paid quarterly or half-yearly as indicated by the bank at the time of account opening.