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Theo

● Savings Account Expert

🏦 Hi! I'm Theo, your savings account guide.

Ask me which bank gives the highest savings interest rate, minimum balance rules, or what to look for in a savings account.

🏦 Savings Account — Best Rates 2026

Earn up to 7.50% on your savings — 3× more than SBI. Fully liquid, fully safe. Compare all banks.

7.50%Best Rate
3.00%SBI Rate
₹10KSec 80TTA Deduction
✅ Fully Liquid — Withdraw Anytime
🛡️ DICGC Insured up to ₹5L
📱 Full UPI & Digital Banking

Compare Savings Account Interest Rates — 2026

Rates are tiered by balance. Sorted by highest achievable rate.

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Savings Account Rate Comparison

BankMax Rate (p.a.)Rate on Low BalanceTypeUpdated
Ujjivan Small Finance Bank
Highest Rate		7.50% p.a. Highest3.00% (≤₹1L)SFBApr 2025
RBL Bank
7.00% p.a.3.25% (≤₹1L)PvtMay 2025
IndusInd Bank
Good Digital		7.00% p.a.3.00% (≤₹5L)PvtJun 2025
IDFC First Bank
Zero MAB Option		7.00% p.a.3.00% (≤₹5L)PvtJun 2025
Bandhan Bank
7.00% p.a.3.00% (≤₹1L)SFBMay 2025
DBS Digibank
Digital Only		5.50% p.a.2.75% (≤₹2L)PvtMay 2025
Yes Bank
5.00% p.a.3.00% (≤₹10L)PvtApr 2025
Bank of Baroda
4.50% p.a.2.75%PSUFeb 2024
Canara Bank
4.00% p.a.3.00%PSUMay 2025
Union Bank of India
4.00% p.a.3.00%PSUApr 2025
Bank of India
3.65% p.a.2.75%PSUJun 2025
Kotak Mahindra Bank
811 Zero Balance		3.25% p.a.2.75% (≤₹50L)PvtApr 2025
ICICI Bank
3.25% p.a.3.00%PvtApr 2025
Axis Bank
3.25% p.a.3.00%PvtMay 2025
SBI
3.00% p.a.2.70%PSUOct 2022
Indian Bank
2.90% p.a.2.75%PSUJun 2025
HDFC Bank
2.75% p.a.2.75%PvtJun 2025
Punjab National Bank
3.00% p.a.2.70%PSUJan 2023
* Rates are tiered — higher balances earn higher rates. Data from Freo.money. Last updated June 2025. Verify current rates with the bank before opening.

Balance-wise Rate Slabs — Top Banks

Rates vary by your account balance. Here's the full breakdown for the best-paying banks.

Ujjivan SF Bank Up to 7.50%

Balance SlabRate
Up to ₹1 lakh3.00%
₹1L – ₹5L5.00%
₹5L – ₹10L6.25%
₹10L – ₹50L7.25%
Above ₹50L ⭐7.50%

Full digital banking. Branches across India. Senior citizen rate: +0.50% higher.

RBL Bank Up to 7.00%

Balance SlabRate
Up to ₹1L3.25%
₹1L – ₹5L3.50%
₹5L – ₹10L5.00%
₹10L – ₹25L6.50%
₹25L – ₹3 Cr ⭐7.00%
₹3 Cr – ₹7.5 Cr6.50%

IDFC First Bank Zero MAB Available

Balance SlabRate
Up to ₹5L3.00%
₹5L – ₹10 Cr ⭐7.00%
₹10 Cr – ₹25 Cr6.75%
₹25 Cr – ₹50 Cr6.50%
₹50 Cr – ₹100 Cr6.00%

FIRST Smart Savings — zero minimum balance account available.

IndusInd Bank Good Digital

Balance SlabRate
Up to ₹5L3.00%
₹5L – ₹25L4.00%
₹25L – ₹50L5.00%
₹50L – ₹1 Cr6.00%
₹1 Cr – ₹5 Cr ⭐7.00%
₹5 Cr+ ⭐7.00%

Bandhan Bank

Balance SlabRate
Up to ₹1L3.00%
₹1L – ₹5L3.00%
₹5L – ₹10L5.00%
₹10L – ₹50L6.00%
₹50L – ₹1 Cr6.00%
Above ₹1L (Balance >₹250 Cr) ⭐7.00%

Kotak Mahindra Bank 811 Zero Balance

Balance SlabRate
Up to ₹50L2.75%
Above ₹50L3.25%

Lower rates but excellent UX. Kotak 811 is a popular zero-balance digital account. Great for daily transactions.

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💡 Up to ₹10,000/year interest on savings accounts is tax-free under Section 80TTA (₹50,000 for senior citizens under 80TTB).

About Savings Accounts

How Savings Account Interest Works

Banks calculate savings account interest on your daily closing balance and credit it to your account quarterly or monthly. The rate is tiered — higher balances typically earn more interest.

Small Finance Banks vs Regular Banks

Small Finance BankPSU / Big Private Bank
Interest RateUp to 7.50%2.75–4.50%
SafetyRBI regulated + DICGCRBI regulated + DICGC
Branch NetworkSmallerPan-India
Digital BankingFull UPI + Net bankingFull UPI + Net banking
Best ForMaximising interestDaily transactions

Tax on Savings Account Interest

  • Section 80TTA: Up to ₹10,000/year interest from savings accounts is tax-deductible for individuals and HUFs below 60 years
  • Section 80TTB: Senior citizens (60+) get ₹50,000 deduction on interest from all deposits (savings + FD + RD)
  • Interest above these limits is added to income and taxed at slab rate
  • Banks deduct TDS if total interest exceeds ₹10,000/year (savings accounts)

What to Look For in a Savings Account

  • Interest rate: Tiered rates — check the slab for your balance
  • Minimum Average Balance (MAB): Monthly penalty if you fall below (₹0–₹10,000)
  • Zero Balance options: IDFC First, Kotak 811, Jan Dhan accounts
  • Digital features: UPI, instant transfers, international debit card
  • Branch & ATM network: Critical for regular cash transactions

Frequently Asked Questions

Small Finance Banks like Ujjivan are mandated by RBI to lend to micro/small borrowers who pay higher interest rates. To fund this lending, they attract deposits by offering higher savings rates. Both are equally safe — all deposits up to ₹5L are insured by DICGC.
If your balance regularly stays above ₹10L, moving to Ujjivan (7.25–7.50%) vs SBI (3%) could earn you ₹42,500 more annually on ₹10L. Keep one account at a major bank for transactions, and park larger savings in a high-interest SFB account.
Yes. Small Finance Banks are licensed by RBI and deposits up to ₹5 lakh per depositor are insured by DICGC (RBI's subsidiary). You can spread deposits across multiple banks to maximise your DICGC coverage. No depositor has ever lost insured money in India's banking history.
Most private banks charge ₹500–₹1,500/quarter if your average monthly balance falls below the minimum (typically ₹5,000–₹25,000). IDFC First and Kotak 811 offer zero minimum balance accounts. Jan Dhan (PMJDY) accounts have no minimum balance requirement at PSU banks.
Yes — you can have a separate high-interest savings account alongside your salary account. Keep 1–2 months expenses in your salary account and sweep the surplus to Ujjivan or IDFC First each month. Both have full digital banking with UPI, so you can transfer back instantly when needed.

Make Your Savings Work Harder

Our experts help you find the right savings account for your balance size and banking habits

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Theo

Your AI Financial Expert

👋 Hi! I'm Theo, your AI financial expert. What are you looking for today?