9 Banks · Updated August 2026
Savings Account Interest Rates 2026
Most banks offer a flat 2.50% after rate cuts in 2025–26. IDFC FIRST Bank stands apart at 6.50% on balances above ₹3 lakh — nearly 4× the industry rate.
Savings Account Interest Rate Comparison — All Banks
Standard rate for retail individual accounts. Rates % p.a., calculated on daily balance.
| Bank | Standard Rate | Best Rate | Min. Balance | Zero Bal. | Updated |
|---|---|---|---|---|---|
| Public Sector Banks | |||||
| State Bank of India | 2.50% | 2.50% | NIL | ✓ | Jun 2025 |
| Punjab National Bank | 2.50% | 2.50% | NIL | ✓ | Oct 2025 |
| Canara Bank | 2.55% | 2.55% | NIL | ✓ | Jul 2025 |
| Bank of Baroda | 2.50% | 2.50% | ₹1,000+ | ✓ | Aug 2025 |
| Private Sector Banks | |||||
| HDFC Bank | 2.50% | 3.25% | ₹10,000 | ✓ | 2025-26 |
| ICICI Bank | 2.50% | 2.50% | ₹15,000 | ✓ | Apr 2025 |
| Axis Bank | 2.50% | 2.50% | ₹12,000 | ✓ | Apr 2026 |
| Kotak Mahindra Bank | 2.50% | 2.50% | ₹10,000 | ✓ | Jul 2025 |
| IDFC FIRST Bank | 2.50% | 6.50%★ | ₹25,000 | ✓ | Apr 2026 |
★ = Best rate in group. Standard Rate = rate for typical retail balance. Best Rate = highest tier available to retail customers.
IDFC FIRST Bank — 6.50% on Balances Above ₹3 Lakh
The only bank in India offering a savings rate that rivals 1-year FD rates. At 6.50% p.a. on balances above ₹3 lakh, IDFC FIRST pays nearly 4× what SBI, ICICI, Axis, and Kotak offer.
Interest credited monthly (not quarterly like other banks) · MAB ₹25,000 · Verify rates at idfcfirstbank.com
Bank-wise Savings Account Details
State Bank of IndiaPublic SectorUp to 2.50%
Interest Rates
Account Details
HDFC BankPrivate SectorUp to 3.25%
⚠ HDFC is the only large private bank retaining a meaningful retail tier — 3.25% on balances above ₹50 lakh.
Interest Rates
Account Details
ICICI BankPrivate SectorUp to 2.50%
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Account Details
Punjab National BankPublic SectorUp to 2.50%
⚠ Rate approximately verified at 2.50%; some sources note 2.70% — verify at official PNB website.
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Account Details
Canara BankPublic SectorUp to 2.55%
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Account Details
Bank of BarodaPublic SectorUp to 2.50%
Interest Rates
Account Details
Axis BankPrivate SectorUp to 2.50%
⚠ Axis removed all retail tiers in April 2026 (previously 2.75–3.50%), now flat 2.50% for all retail accounts.
Interest Rates
Account Details
Kotak Mahindra BankPrivate SectorUp to 2.50%
⚠ Kotak cut from a tiered 3.50–4.00% to flat 2.50% in July 2025 — one of the biggest rate reductions among peers.
Interest Rates
Account Details
IDFC FIRST BankPrivate SectorUp to 6.50%
⚠ Rate verified from third-party sources; confirm at idfcfirstbank.com before opening account.
Interest Rates
Account Details
Savings Account Interest — Key Rules
Calculated Daily
Interest is computed on the daily closing balance — not the monthly average. A withdrawal on any day reduces that day's interest earning.
Credited Quarterly
RBI mandates quarterly crediting: March 31, June 30, September 30, December 31. IDFC FIRST Bank credits monthly — a compounding advantage.
Section 80TTA Deduction
Individuals below 60 can claim up to ₹10,000 deduction on savings interest under Sec 80TTA. Senior citizens claim up to ₹50,000 under Sec 80TTB (covers FD interest too).
No TDS on Savings Interest
Unlike FDs, TDS is not deducted on savings account interest by banks. You must declare it in your ITR under 'Income from Other Sources'.
DICGC Protection
All savings accounts are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation) up to ₹5 lakh per depositor per bank — same as FDs.
Savings vs FD
Savings: 2.50–6.50% with full liquidity. FD (1 year): 6.25–6.50% but funds locked with premature withdrawal penalty. IDFC FIRST's savings rate makes the choice interesting.