Savings Account Interest Rates

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 9^th 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 10^th 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.