Saving Account Interest Rates: Find the Best Rates for Your Savings

Are you in this investment genre? Finding avenues for investing your money may be for short or long term. Whatever your requirements opening a bank account and keeping money in your savings account can be the ideal option for beginners. It is a suitable option for those with a fixed monthly income, especially for salaried individuals. Many Indian public and private sector banks offer a wide range of savings account types to perfectly suit various financial requirements. Usually, if you are investing in a savings account interest rate may vary from 2.60% to 8.00% per annum. The rate of interest depends on the amount you will deposit in your bank account.  But prior to opening a savings bank account you must gain knowledge on saving account interest rates as well as other benefits involved with the account. In this article let us look into the best savings account interest rates for the year 2025.

Understanding the mechanism of savings bank account interest rate

The interest rate on a savings account is the amount a bank will pay you for keeping your money deposited with them. This rate is usually expressed as an Annual Percentage Yield (APY), which takes into account the effect of compounding over a year. The higher the APY, the more you earn on your savings.

Influencing the interest rates on savings accounts are several factors such as:

• The monetary policy of a central bank
• Operational expenses of the bank
• Market competition between banks
• Economic conditions like inflation and economic growth

Bank interest rates from top banks up to Rs.1 lakh

In this segment, we will discuss about interest rate offered by banks under Rs. 1 Lakh. Many banks tend to offer lower interest rates if your account balance is 1 lakh or less. So, let’s now check what can be the probable interest rates offered by private and government banks in this segment.

Jana Small Finance Bank offers an interest rate of 2.50%

YES Bank offers an interest rate of 3.00%

IDFC First Bank Limited offers an interest rate of 3.00%

RBL Bank Limited caters interest rate of 3.50%

Utkarsh Small Finance Bank offers an interest rate of 4.00%

IndusInd Bank provides an interest rate of 3.00%

Fincare Small Finance Bank offers an interest rate of 3.00%

Suryoday Small Finance Bank Limited provides interest of 3.00%.

Interest rates ranging from Rs. 1 to 5 lakh

Several banks provide comparatively high-interest savings account rates on deposits ranging from Rs. 1 Lakh to Rs. 5 Lakh on the incremental balance. Notably, deposits up to Rs. 5 Lakh in any bank are insured by the DICGC, ensuring that account holders receive their money back in case of a bank default. Below is a list of the top savings accounts offering the highest interest rates for deposits within this range:

Utkarsh Small Finance Bank Limited bank offers a 6.25% interest rate

Bandhan Bank Ltd. offers an interest rate of 6.00%

DBS Bank offers an interest rate of 7.00% (Rs. 4 lakh – Rs. 5 lakh)

RBL Bank Ltd. offers an interest rate of 5.50% (Above Rs. 1 lakh up to Rs. 10 lakh)

Jana Small Finance Bank Limited provides interest of 5.00% (paid on incremental balances above Rs. 1 lakh up to Rs. 5 lakh)

Equitas Small Finance Bank Limited offers an interest rate of 5.00%

YES Bank offers an interest rate of 4.00%

Savings account interest rate on Rs. 5 to 10 lakh

If your deposit amount ranges from Rs. 5 Lakh to Rs. 10 Lakh, most banks provide their highest interest rates on the incremental balance. For this your average interest on a savings account will be much higher compared to other segments. Below is a list of the best savings accounts with competitive interest rates for deposits within this range:

Bandhan Bank offers an interest rate of 6.00%. It depends on balances above Rs.1 lakh and up to Rs.10 lakh.

DBS Bank offers an interest rate of 5.00%

Utkarsh Small Finance Bank offers 7.50% generally on balances above Rs.5 lakh and up to an amount of Rs.50 crore.

Jana Small Finance Bank offers an interest rate of 6.50%

RBL Bank offers an interest rate of 5.50% usually on balances above Rs.1 lakh and ranging from Rs.10 lakh

Equitas Small Finance Bank provides interest of 5.00% on balances above Rs.1 lakh and up to Rs.7 lakh. This bank provides 7.00% interest on balances above Rs.7 lakh and up to Rs.25 crores.

Suryoday Small Finance Bank caters interest rate of 7.25%

DCB Bank offers a 4.75% interest rate.

Savings account rate of interest ranging from Rs.10 lakh to Rs. 1 crore

For individuals who usually maintain savings account balances between Rs. 10 Lakh and Rs. 1 Crore, many banks offer competitive interest rates. Here’s a list of the top banks providing the highest returns in this range:

AU Small Finance Bank offers an interest rate of 7.00%

Jana Small Finance Bank offers an interest rate of 7.50% on savings ranging from Rs.10 lakh up to Rs. 10 crore.

RBL Bank offers an interest rate of 6.00% on savings amounts Rs.10 lakh and up to Rs.25 lakh, 7.50% on amounts Rs.25 lakh and up to Rs.3 crore

Utkarsh Small Finance Bank offers interest of 7.50% on balances above Rs.5 lakh and up to Rs.50 crore.

SBM Bank India offers 7.00% on savings amounts Rs.10 lakh and up to Rs.50 lakh, 7.25% on balances above Rs.50 lakh and up to Rs.50 crore

Savings account rate of interest ranging above Rs. 1 crore

Account holders who usually maintain a balance amount exceeding Rs. 1 crore, here are the banks offering the highest interest rates in this range take a look –

SBM Bank India offers a 7.25% interest rate

Bandhan Bank offers 7.00% on balances above Rs.10 lakh and up to Rs.2 crore.

YES Bank offers an interest rate of 7.00%

Ujjivan Small Finance Bank offers 7.50% on the amount Rs.10 lakh and up to Rs.10 crore, for amounts Rs.10 crore and up to Rs.20 crore it offers a 7.55% interest rate.

Picking a savings account with high interest rates can boost your money’s growth. Banks such as HDFC, Axis, and ICICI have some good rates to offer. HDFC savings account interest rates go from 3.00% to 3.50%. Axis Bank gives 3.00% to 3.50%. ICICI Bank also provides 3.00% to 3.50%. These rates change based on how much money you keep in your account. To get the most out of your savings, look at the APYs, fees, and how much you need to keep in the account. High-yield accounts are a smart choice if you want your savings to grow well over time.

Disclaimer – This blog is for informational purposes only. Before conducting any investment, it is advisable to carry out comprehensive research.

People Also Ask About Saving Account Interest Rates

Which bank offers the highest interest rate on savings accounts?

Several banks in India provides high interest rate on savings accounts like Yes Bank, Bandhan Bank, ESAF Small Finanace Bank Limited etc.

How do I find the best interest rates on savings accounts?

You can seamlessly compare rates on bank websites, use financial comparison platforms, check small finance banks, as well as take a look at promotional offers for the best rates.

What is the average interest rate for savings accounts in 2025?

​In the year 2025, savings account interest rates in India may vary from 2.60% to 8.00% per annum, depending on the bank and balance maintained.

Are online banks offering higher interest rates than traditional banks?

This is true that online banks typically offer higher interest rates than traditional banks due to lower overhead costs and competitive digital banking services.

Which savings account provides daily interest calculations?

In India many banks offer daily interest calculations on savings accounts, like SBI, HDFC, ICICI, and Kotak, ensuring better returns on deposits.

Which savings account offers the best interest rates for senior citizens?

​Unity Small Finance Bank offers good interest rate for senior citizens. They offer up to 9.50% interest on fixed deposits which is notably higher than standard savings accounts.

Are there high-yield savings accounts available in India?

High-yield savings accounts are available in India, offered by small finance banks like ESAF, and Ujjivan, with competitive rates.

Do salary accounts offer better interest rates than regular savings accounts?

Salary accounts usually cater the same or lower interest rates as regular savings accounts, but they provide additional benefits like zero balance.

Which digital banks in India provide the highest savings account interest rates?

IndusInd Bank, Yes Bank, Bandhan Bank caters good interest rate for savings account in India.

Are there any special savings accounts for women with higher interest rates?

Some banks offer special women’s savings accounts with competitive interest rates and added benefits like discounts, cashback, and exclusive financial perks.

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