Best Savings Account Interest Rates for 2025 in India
Introduction
Savings accounts are a staple of personal finance. Whether you’re building an emergency fund, saving for short-term goals, or parking idle cash, a savings account offers safety and liquidity—along with interest income. With rising inflation and changing RBI repo rates, many banks have revised their interest offerings in 2025. So, which ones offer the best bang for your buck?
All banks set savings account interest rates that usually vary from 2.60% per annum to 8.00% per annum depending on the amount of savings. Before one opens a savings account in a bank, one must be familiar with the interest rates offered by the bank and the type of savings account an individual is being offered with other facilities. Let us discuss in detail about the best savings account interest rates offered by the banks in 2025.
In this category, most banks offer relatively lower interest rates to customers. However, we have segregated the best savings accounts that offer highest interest rate for deposits up to Rs. 1 Lakh below:
| Bank | Interest Rate (p.a.) |
| Utkarsh Small Finance Bank Limited | 4.00% |
| North East Small Finance Bank Limited | 4.00% |
| SBM Bank (India) Limited | 3.50% |
| Capital Small Finance Bank Limited | 3.50% |
| Ujjivan Small Finance Bank Limited | 3.50% |
| ESAF Small Finance Bank Limited | 3.50% |
| RBL Bank Limited | 3.50% |
| Equitas Small Finance Bank Limited | 3.00% |
| Shivalik Small Finance Bank Limited | 3.00% |
| Suryoday Small Finance Bank Limited | 3.00% |
Top Savings Account Interest Rates for Deposits from Rs. 1 Lakh to Rs. 5 Lakh
Many banks offer relatively higher interest rates on deposits from Rs. 1 Lakh and above up to Rs. 5 Lakh on the incremental balance. It is worth noting that the amount up to Rs. 5 Lakh in any bank is insured by DICGC and in case of any eventuality of default by the bank, accountholders will get their money back. Here is the list of best savings account with the highest interest rates on deposits ranging between Rs. 1 Lakh to Rs. 5 Lakh:
| Bank | Interest Rate (p.a.) |
| DBS Bank | 7.00% (Rs. 4 lakh – Rs. 5 lakh) |
| Utkarsh Small Finance Bank Limited | 6.25% |
| Bandhan Bank Ltd. | 6.00% |
| ESAF Small Finanace Bank Limited | 6.00% (for incremental amount above Rs. 1 lakh) |
| RBL Bank Ltd. | 5.50% (Above Rs. 1 lakh up to Rs. 10 lakh) |
| Equitas Small Finance Bank Limited | 5.00% |
| Suryoday Small Finance Bank Limited | 5.00% |
| Jana Small Finance Bank Limited | 5.00% (paid on incremental balances above Rs. 1 lakh up to Rs. 5 lakh) |
| Ujjivan Small Finance Bank Limited | 5.00% |
| SBM Bank (India) Limited | 4.00% |
Best Savings Account Interest Rates for Deposits from Rs. 5 Lakh to Rs. 10 Lakh
This band is the highest interest earning band for accountholders of most banks. Thus, banks offer the highest interest rates on the incremental amount in the savings account. Below-mentioned is the list of top savings accounts for deposits ranging from Rs. 5 Lakh to Rs. 10 Lakh:
| Bank | Interest Rate (p.a.) |
| ESAF Small Finance Bank Limited | 7.50% (Above Rs. 5 lakh up to Rs.15 Crore) |
| Utkarsh Small Finance Bank Limited | 7.50% (Incremental balance above Rs. 5 lakh up to Rs. 50 crore) |
| Suryoday Small Finance Bank Limited | 7.25% |
| Ujjivan Small Finance Bank Limited | 7.25% (Above Rs. 5 lakh) |
| IDFC First Bank Ltd. | 7.25% (Above Rs. 5 lakh up to Rs. 100 Crore) |
| Equitas Small Finance Bank Limited | 7.00% (Above Rs. 7 lakh up to Rs. 25 Crore) |
| Jana Small Finance Bank Limited | 6.5% (paid on incremental balances above Rs. 5 lakh up to Rs. 10 lakh) |
| Bandhan Bank Ltd. | 6.00% |
| Induslnd Bank Ltd | 6.00% |
| RBL Bank Ltd. | 5.50% (Above Rs. 1 lakh up to Rs. 10 lakh) |
Top Savings Account Interest Rates for Deposits from Rs. 10 Lakh to Rs. 1 Crore
Those who wish to maintain balance from Rs. 10 Lakh to Rs. 1 Crore in their savings account can choose from the below-mentioned list of top banks with highest interest rates in this range:
| Bank | Interest Rate (p.a.) |
| DCB Bank Ltd. | 7.75% (On balances from Rs. 10 lakh to less than Rs. 1 Crore) |
| ESAF Small Finance Bank Limited | 7.50% – Above Rs.5 lakh (i.e. for incremental amount above Rs. 5 lakh) |
| Suryoday Small Finance Bank Limited | 7.50% (Above Rs. 10 lakh up to and including Rs. 2 crore) |
| Utkarsh Small Finance Bank Limited | 7.50% (Incremental balance above Rs. 5 lakh up to Rs. 50 crore) |
| Ujjivan Small Finance Bank Limited | 7.50% (Above Rs. 25 lakh) |
| Jana Small Finance Bank Limited | 7.50% (More than Rs. 10 lakh and up to Rs. 10 crore) |
| RBL Bank Ltd. | 7.50% (Rs. 25 lakh and up to Rs. 3 crore) |
| IDFC First Bank Limited | 7.25 (On balances more than Rs. 5 lakh and up to Rs. 100 crore) |
| SBM Bank (India) Limited | 7.25% (More than Rs. 50 lakh to Rs. 50 Crore) |
| Bandhan Bank Limited | 7.00% (On daily balance above Rs. 10 lakh to Rs. 2 crore) |
Best Savings Account Interest Rates for Deposits above Rs. 1 Crore
Account holders who intend to maintain huge balance in their savings account, i.e. above Rs. 1 Crore, should choose from these best savings account offering highest interest rates in this range:
| Bank | Interest Rate (p.a.) |
| DCB Bank Ltd. | 8.00% (On balances from Rs. 1 crore to less than Rs. 3 Crore) |
| ESAF Small Finance Bank Limited | 7.50% (Above Rs. 5 lakh (i.e. for incremental amount above Rs.5 lakh)) |
| Suryoday Small Finance Bank Limited | 7.50% (Above Rs. 10 lakh up to & including Rs 2 Crore) |
| Utkarsh Small Finance Bank Limited | 7.50% (Incremental balance above Rs. 5 lakh up to Rs. 50 Crore) |
| RBL Bank Ltd. | 7.50% (Above Rs. 25 lakh and up to Rs. 3 Crore) |
| Ujjivan Small Finance Bank Limited | 7.50% (Above Rs. 25 lakh) |
| Jana Small Finance Bank Limited | 7.50% (More than Rs. 10 lakh and up to Rs. 10 Crore) |
| SBM Bank (India) Limited | 7.25% (Balance more than Rs. 50 lakh to Rs. 50 Crore) |
| AU Small Finance Bank Limited | 7.25 (On balances from Rs. 1 Crore to less than Rs. 5 Crore) |
| Bandhan Bank Ltd. | 7.00% (Daily Balance above Rs. 10 lakh to Rs. 2 Crore) |
How to calculate interest on savings account for varying interest rates?
Various banks provide different interest rate on the amount deposited in the bank. This is done to promote people to maintain specific amount in the savings account to reap maximum benefits. Let us understand how interest rate is calculated on different deposited amount in the savings account. Below mentioned is the break-up of digibank by DBS Bank India Limited deposited for savings accounts.
| Deposit Break-up | Interest Rate (p.a.) |
| Balance up to Rs. 1 Lakh | 3.25% |
| Balances over and above Rs. 1 Lakh and up to Rs. 4 Lakh | 3.50% |
| Balances over and above Rs. 4 Lakh and up to Rs. 5 Lakh | 7.00% |
| Balances over and above Rs. 5 Lakh and up to Rs. 10 Lakh | 5.00% |
| Balances over and above Rs. 10 Lakh and up to Rs. 50 Lakh | 4.00% |
| Balances over and above Rs. 50 Lakh and up to Rs. 1 Crore | 5.00% |
| Balances over and above Rs. 1 Crore | 3.00% |
Assume your daily account balance is Rs. 1 Lakh. The bank offers an interest rate of 3.25% for balances up to Rs. 1 Lakh. Then, let us assume, that you maintain balance of Rs. 3,00,000 in your savings account throughout the year. You will earn different interests for different amounts at varying interest rates. Let us assess how the interest rate will differ on different outstanding balance.
| Deposit Amount | Interest Rate | Interest (in Rs.) | Total (in Rs.) |
| Rs. 1 Lakh | 3.25% | 3,250 | 1,03,250 |
| Rs. 1 Lakh | 3.50% | 3,500 | 1,03,500 |
| Rs. 1 Lakh | 3.50% | 3,500 | 1,03,500 |
| Total Deposit = Rs. 3 Lakh | 10,250 | 3,10,250 |
Best Savings Account for Funds up to Rs. 5,00,000
When applying for a savings account, an individual always wants to know the return on investment that would be offered to him/her on savings. Fixed deposits and mutual funds have less liquidity where the funds are blocked for some period and we are unable to access those funds immediately. However, this is not the case with keeping money in a savings account as you can withdraw funds immediately. There are some savings accounts that offer high interest rates on your savings as well. Here is a list of some of the savings accounts that offer relatively higher interest rates.
| Savings Account | Interest Rate (p.a.) |
| ESAF Small Finance Bank Limited | 3.50% (Up to and including Rs. 1 lakh) |
| 6% (Above Rs.1 lakh up to and including Rs.5 lakh (i.e. for incremental amount above Rs.1 lakh)) | |
| Jana Small Finance Bank | 3.50% (Up to Rs. 1 lakh) |
| 5.00% (More than Rs. 1 lakh and up to Rs. 5 lakh) | |
| Suryoday Small Finance Bank | 3.00% (Up to and including Rs. 1 lakh) |
| 5.00% (Above Rs. 1 lakh up to and including Rs. 5 lakh) | |
| Utkarsh Small Finance Bank | 2.50% (Balance up to Rs. 1 lakh) |
| 5.00% (Incremental balance above Rs. 1 lakh) |
Banks offer varying interest rates for different deposit amount. Most banks offer low interest rate for deposits up to Rs. 1 Lakh whereas a relatively higher interest rate is offered on the amount above Rs. 1 Lakh up to a specified limit.
Let us understand the interest that would be received through the below-mentioned calculation:
| Name of the Bank | Total Interest Received on Amount of Rs. 1,00,000 | Total Interest Received on Amount of Rs. 3,00,000 | Total Interest Received Per Year |
| ESAF Small Finance Bank Limited | Rs. 3,500 | Rs. 12,000 | Rs. 15,500 |
| Jana Small Finance Bank | Rs. 3,500 | Rs. 10,000 | Rs. 13,500 |
| Suryoday Small Finance Bank | Rs. 3,000 | Rs. 10,000 | Rs. 13,000 |
| Utkarsh Small Finance Bank | Rs. 2,500 | Rs. 10,000 | Rs. 12,500 |
For instance – If a person maintains a balance of Rs. 1,00,000 in a ESAF Small Finance Bank savings account, he/she will get a total return of Rs. 3,500 per year. However, if the customer maintains a balance of Rs. 3,00,000, the return would be Rs. 15,500. The breakdown of the amount is mentioned below:
| Interest on first Rs. 1 lakh = Rs. 1,00,000 x 3.50/100 = Rs. 3,500Interest on the next Rs. 2 lakh = Rs. 2,00,000 x 6.00/100 = Rs. 12,000Total Interest on Rs. 3 lakh = Rs. 3,500 + Rs. 12,000 = Rs. 15,500 |
Hence, the customer will receive a total interest of Rs. 15,500 per year on maintaining a balance of Rs. 3,00,000 in the savings account.
The above-mentioned banks are a few of the banks that offer individuals with higher rates on funds up to Rs. 5,00,000. It is to be noted that if you maintain this balance in your savings account, it would give you access to avail your funds in the hour of need immediately and you can also avail high rate of interest on your savings account balance.
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