Akhilesh Saini
Banking & FinanceGuide

Savings Account Interest Rates of Major Banks in India: Current Comparison

Compare current savings account interest rates from major Indian banks including SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, PNB, Bank of Baroda, Canara Bank and Union Bank of India.

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Banking app and bank icons illustrating savings interest rates

Quick Answer

For normal retail balances, most major Indian banks currently pay 2.50%–2.70% p.a. on savings accounts.

BankTypical retail savings rateRelevant retail slab
SBI2.70%Below ₹10 crore
Canara Bank2.55%Below ₹50 lakh
Punjab National Bank2.50%Up to ₹100 crore
HDFC Bank2.50%All savings balances
ICICI Bank2.50%All savings balances
Axis Bank2.50%Below ₹2,000 crore
Kotak Mahindra Bank2.50%All savings balances
Bank of Baroda2.50%Up to below ₹50 crore
Union Bank of India2.50%Up to ₹50 lakh

For a typical individual customer, the difference is small. On an average balance of ₹1 lakh, the difference between 2.50% and 2.70% is only about ₹200 per year before tax.

That is why you should not choose a savings account on interest rate alone.

Major-Bank Savings Rates

State Bank of India (SBI)

Retail rate: 2.70% p.a. for balances below ₹10 crore
Higher slab: 3.00% p.a. at ₹10 crore and above

SBI remains one of the higher-paying major banks for ordinary retail savings balances in this comparison.

View SBI interest rates

Punjab National Bank (PNB)

Up to ₹100 crore: 2.50% p.a.
Above ₹100 crore to ₹500 crore: 2.70% p.a.
Above ₹500 crore to ₹1,000 crore: 3.60% p.a.
Above ₹1,000 crore to ₹2,000 crore: 3.75% p.a.
Above ₹2,000 crore: 4.25% p.a.

PNB revised its savings-deposit structure from 1 October 2025. For an ordinary retail customer, the practical rate is therefore 2.50%.

View PNB deposit rates

Canara Bank

Below ₹50 lakh: 2.55% p.a.
₹50 lakh to below ₹100 crore: 2.55% p.a.

Higher institutional-style slabs increase beyond this level, but they are not relevant to most individual customers.

View Canara Bank deposit rates

HDFC Bank

All savings balances: 2.50% p.a.

HDFC Bank's current savings rate has been 2.50% p.a. across balance slabs since its June 2025 revision.

Interest is calculated on the daily end-of-day clear balance and credited quarterly.

View HDFC Bank

ICICI Bank

All savings balances: 2.50% p.a.

ICICI Bank calculates savings interest on the daily closing balance and credits it quarterly.

View ICICI Bank interest rates

Axis Bank

Below ₹2,000 crore: 2.50% p.a.

At ₹2,000 crore and above, Axis uses a MIBOR-linked rate. That slab is irrelevant for normal retail banking, so the practical consumer rate is 2.50%.

View Axis Bank savings rates

Kotak Mahindra Bank

All savings balances: 2.50% p.a.

Kotak moved to a uniform 2.50% savings rate across account balances from July 2025.

View Kotak savings accounts

Bank of Baroda

Up to below ₹50 crore: 2.50% p.a.
₹50 crore to below ₹500 crore: 2.75% p.a.

For almost every retail customer, the effective rate is therefore 2.50%.

View Bank of Baroda savings rates

Union Bank of India

Up to ₹50 lakh: 2.50% p.a.
Above ₹50 lakh to ₹50 crore: 2.55% p.a.
Above ₹50 crore to ₹100 crore: 2.60% p.a.

The rate becomes progressively higher only at very large balances.

View Union Bank rates

How Savings Account Interest Is Calculated

RBI rules require interest on domestic rupee savings deposits to be calculated on a daily product basis.

Daily interest = End-of-day balance × annual interest rate ÷ 365

Banks then credit the accumulated interest periodically, commonly every quarter.

Does a Higher Savings Rate Really Matter?

On ₹1 lakh maintained for one year:

  • 2.50% ≈ ₹2,500 before tax
  • 2.55% ≈ ₹2,550
  • 2.70% ≈ ₹2,700

So moving from a 2.50% bank to a 2.70% bank increases annual interest by only about ₹200 per ₹1 lakh.

For many customers, these may matter more:

  • zero/minimum-balance requirement
  • branch and ATM network
  • mobile banking quality
  • UPI reliability
  • debit-card charges
  • cash-deposit rules
  • cheque-book charges
  • customer service
  • sweep-in FD facility
  • account-closure charges

What About High-Balance Savings Accounts?

Banks are allowed to offer different savings rates above specified balance thresholds.

However, many attractive-looking upper slabs begin at balances such as ₹10 crore, ₹50 crore, ₹100 crore or even ₹2,000 crore.

This guide therefore separates the practical retail rate from the headline maximum rate.

Do Senior Citizens Get a Higher Savings Rate?

Unlike fixed deposits, major banks generally do not add a separate senior-citizen interest premium simply because the account holder is older.

Senior-citizen savings products may still include other benefits, but the underlying rate is normally determined by the balance slab.

Deposit Insurance

DICGC covers eligible deposits up to ₹5 lakh per depositor per insured bank, including principal and accrued interest, in the same right and capacity.

The limit applies across eligible savings, fixed, current and recurring deposits held with the same bank.

Read the DICGC guide

Tax on Savings Account Interest

Savings-account interest forms part of taxable income.

Under the old tax regime:

  • eligible non-senior individuals and HUFs can claim up to ₹10,000 under Section 80TTA on eligible savings-account interest
  • eligible resident senior citizens can claim up to ₹50,000 under Section 80TTB on eligible deposit interest

These deductions are generally not available under the new tax regime.

Which Bank Should You Choose for Savings?

If interest alone is the criterion:

  • SBI: 2.70% for ordinary retail balances
  • Canara Bank: 2.55%
  • HDFC / ICICI / Axis / Kotak / PNB / Bank of Baroda / Union Bank: broadly 2.50%

But a 0.20% difference is small. For everyday banking, choose the best combination of low fees + convenient banking + reliable digital service + branch access + acceptable interest rate.

Scope of This Guide

This guide compares selected major public- and private-sector banks commonly used by Indian retail customers.

It does not attempt to identify the highest savings-account rate in India. Small finance banks and some smaller private banks may offer higher rates, often with balance-slab conditions.

How These Rates Were Checked

Priority was given to current official bank rate pages and notices.

Rates were checked as of 30 September 2026 and may change at any time.

Primary Sources