Savings Account Interest Rates in India 2026

In 2026, savings account interest rates in India range from 1.5% to 4% p.a. at most public and private banks, while select small finance and digital banks offer up to 7%–8% p.a. on higher balances. Comparing the best savings rates carefully can help you maximise returns while keeping your money easily accessible.

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Best Savings Interest Rates of Popular Banks in India 2026 (Base Slab)

Bank	Interest Rate (p.a.)
AU Small Finance Bank	2.50%
DCB Bank	1.50%
ESAF Small Finance Bank	3.00%
IDFC First Bank	2.50%
IndusInd Bank	2.50%
Jana Small Finance Bank	2.50%
RBL Bank	3.00%
Suryoday Small Finance Bank	2.50%
Utkarsh Small Finance Bank	3.25%
Ujjivan Small Finance Bank	2.50%
YES Bank	2.50%

*Deposits up to ₹5 lakh are insured under DICGC. The rates are updated as of 25 February 2026.

Savings Interest Rates by Small Finance Banks (SFBs) in 2026

Bank	Balance Slab	Interest Rate (p.a.)	Max Rate	Min. Balance
AU Small Finance Bank	Up to ₹5L ₹5-10L ₹10L-25Cr	2.75% 5.00% 7.25%	7.25%	None
Equitas SFB	Up to ₹5L ₹5-10L ₹10L-25L ₹25L-1Cr >₹1Cr	3.50% 5.00% 6.50% 7.00% 7.25%	7.25%	₹5,000
ESAF SFB	Up to ₹1L ₹1-5L ₹5-10L ₹10L-25L ₹25L-1Cr >₹1Cr	3.00% 5.50% 6.00% 7.00% 7.50% 8.00%	8.00%	None
Jana SFB	Up to ₹1L ₹1-5L ₹5-10L ₹10L-1Cr >₹1Cr	2.75% 3.50% 5.00% 6.75% 7.00%	7.00%	₹5,000
Suryoday SFB	Up to ₹1L ₹1-5L ₹5-10L ₹10L-1Cr >₹1Cr	3.25% 5.00% 6.25% 7.50% 7.75%	7.75%	None
Utkarsh SFB	Up to ₹1L ₹1-5L ₹5-10L ₹10L-1Cr >₹1Cr	3.25% 4.25% 5.50% 7.00% 8.00%	8.00%	₹2,000
Ujjivan SFB	Up to ₹5L ₹5-10L ₹10L-1Cr >₹1Cr	3.25% 5.00% 7.00% 7.25%	7.25%	None
Unity SFB	Up to ₹5L >₹5L	3.50% 7.25%	7.25%	₹1,000
Fincare SFB	Up to ₹1L ₹1-5L >₹5L	3.00% 5.00% 7.00%	7.00%	₹5,000
North East SFB	Up to ₹5L >₹5L	4.00% 7.25%	7.25%	None

*Deposits up to ₹5 lakh are insured under DICGC. The rates are updated as of 25 February 2026.

Savings Interest Rates for Deposits Between ₹1 Lakh - ₹5 Lakh

Bank	Interest Rate (p.a.)	Applicable Balance Slab
AU Small Finance Bank	2.75%	₹1L – ₹5L
Bandhan Bank	2.70%	₹1L – ₹5L
DBS Bank	2.50%	Up to ₹2L
DCB Bank	2.25%	₹1L – ₹5L
Equitas Small Finance Bank	5.00%	Up to ₹10L
ESAF Small Finance Bank	5.50%	₹2L – ₹5L
IndusInd Bank	3.00%	₹1L – ₹10L
IDFC First Bank	2.75%	₹1L – ₹10L
Jana Small Finance Bank	3.50%	₹1L – ₹5L
RBL Bank	5.00%	₹5L – ₹10L
SBM Bank India	2.75%	Up to ₹5L
Suryoday Small Finance Bank	3.00%	₹1L – ₹5L
Ujjivan Small Finance Bank	3.00%	₹1L – ₹5L
Utkarsh Small Finance Bank	4.25%	₹1L – ₹5L
YES Bank	2.75%	₹1L – ₹10L

*Deposits up to ₹5 lakh are insured under DICGC. The rates are updated as of 25 February 2026.

Savings Interest Rates for Deposits Between ₹5 Lakh - ₹10 Lakh

Bank	Interest Rate (p.a.)	Applicable Balance Slab
AU Small Finance Bank	3.50%	₹5L – ₹10L
Bandhan Bank	4.85%	₹5L – ₹10L
DBS Bank	5.00%	₹2L – ₹50L
DCB Bank	3.75%	₹5L – ₹10L
ESAF Small Finance Bank	6.00%	₹5L – ₹15L
Jana Small Finance Bank	4.50%	₹5L – ₹10L
SBM Bank India	5.00%	₹5L – ₹10L
Suryoday Small Finance Bank	6.25%	₹5L – ₹10L
Ujjivan Small Finance Bank	6.00%	₹5L – ₹10L
Utkarsh Small Finance Bank	5.50%	₹5L – ₹10L
YES Bank	3.00%	₹10L – ₹25L

*Deposits up to ₹5 lakh are insured under DICGC. The rates are updated as of 25 February 2026.

Savings Interest Rates for Deposits Between ₹10 Lakh - ₹1 Crore

Bank	Interest Rate (p.a.)	Applicable Balance Slab
AU Small Finance Bank	6.50%	₹10L – ₹10Cr
Bandhan Bank	5.35%	₹10L – ₹50L
DBS Bank	4.00%	Above ₹50L
DCB Bank	5.75% – 6.90%	₹10L – ₹10Cr (Slab Based)
Equitas Small Finance Bank	7.25%	₹25L – ₹1Cr
ESAF Small Finance Bank	6.50%	₹15L – ₹1Cr
IndusInd Bank	4.00%	₹25L – ₹1Cr
Jana Small Finance Bank	6.75% – 7.00%	₹10L – ₹10Cr
SBM Bank India	6.75%	₹50L – ₹3Cr
Suryoday Small Finance Bank	7.50%	₹10L – ₹2Cr
Ujjivan Small Finance Bank	7.00% – 7.25%	₹10L+
Utkarsh Small Finance Bank	7.25%	₹50L – ₹10Cr
YES Bank	4.00%	₹25L – ₹50L

*Deposits up to ₹5 lakh are insured under DICGC. The rates are updated as of 25 February 2026.

Savings Interest Rates for Deposits Above ₹1 Crore

Bank	Interest Rate (p.a.)	Applicable Balance Slab
AU Small Finance Bank	6.00%	₹10Cr – ₹25Cr
Bandhan Bank	5.55% – 6.00%	₹50L – ₹250Cr
DCB Bank	5.50% – 6.00%	₹10Cr – ₹300Cr+
Equitas Small Finance Bank	7.50% – 7.80%	₹1Cr+
ESAF Small Finance Bank	7.00% – 8.00%	₹1Cr+
IndusInd Bank	5.00%	₹1Cr – ₹100Cr
Jana Small Finance Bank	7.00%	₹50L – ₹20Cr
RBL Bank	5.50%	₹7.5Cr – ₹200Cr
SBM Bank India	6.75%	₹50L – ₹25Cr
Shivalik Small Finance Bank	7.00%	₹50L – ₹10Cr
Suryoday Small Finance Bank	7.50% – 7.75%	₹2Cr – ₹25Cr
Utkarsh Small Finance Bank	7.50% – 8.00%	₹10Cr – ₹100Cr+
YES Bank	4.00%	₹50L – ₹100Cr

*Deposits up to ₹5 lakh are insured under DICGC. The rates are updated as of 25 February 2026.

What are Savings Account Interest Rates?

Savings account interest rates are the percentage returns that banks pay you for keeping money in your savings account. The bank uses those funds for lending and other financial activities. In return, the bank pays you interest, usually calculated daily and credited monthly or quarterly.

Why Comparing Savings Account Interest Rates is Important in 2026?

In 2026, many people are still using old savings accounts paying very low interest. They often do not realise that better options are available with higher savings interest rates.

When you compare savings interest rates carefully, you can:

Earn more passive income without taking any investment risk.
Protect your savings from losing value due to inflation.
Build your emergency fund faster.
Increase your returns without locking your money like in a fixed deposit.

The difference between 0.5% and 5% may not look huge at first. However, over time, this gap creates a big difference in total returns. Even a small rate increase can add thousands to your savings over a few years.

Key Factors That Affect Savings Interest Rates in India

The following factors influence the savings account interest rates in 2026:

Central bank policies directly influence savings account interest rates.
When benchmark rates increase, banks usually increase savings interest rates as well.
When benchmark rates fall, banks may reduce the returns offered on savings accounts.
Competition among banks with the highest interest rates pushes institutions to offer better deals.
Economic conditions, inflation, and liquidity levels also impact the best bank interest rates.

Smart Strategy to Maximise Best Bank Interest Rates

Review savings interest rates every few months. Banks change their rates frequently, and better options may become available.
Moving funds to the highest interest rate savings account can improve your yearly returns.
Splitting money between accounts can help you balance liquidity and higher earnings.
Avoid accounts that advertise high savings account interest rates but charge hidden fees.
Staying updated about economic trends helps you understand future changes in the best savings account interest rates.

Which is Better: Savings Account vs FD vs Mutual Fund vs ULIP Plan?

Feature	Savings Account	Fixed Deposit	Mutual Fund	ULIP Plan
Purpose	To keep money safe with easy access	To earn fixed returns by locking money	To grow wealth through market investments	To combine insurance + investment
Returns (2026 Avg.)	0.5% – 5% depending on the bank	5% – 8% depending on tenure & bank	8% – 15%+ depending on fund type & market	6% – 15% depending on market performance
Risk Level	Very low	Very low	Moderate to High (depends on fund type)	Moderate (market-linked)
Liquidity	Very high (withdraw anytime)	Low to medium (penalty on early withdrawal)	High (redeem anytime, except lock-in funds)	Low (5-year lock-in minimum)
Lock-in Period	No lock-in	Fixed tenure (7 days to 10 years)	No lock-in (except ELSS – 3 years)	Minimum 5 years
Capital Safety	Safe (bank-backed)	Safe (bank-backed)	Not guaranteed	Not guaranteed
Returns Guaranteed?	Yes (fixed rate)	Yes (fixed rate)	No (market-linked)	No (market-linked)
Best For	Emergency funds & daily needs	Short to medium-term savings	Long-term wealth creation	Long-term goals + life cover
Taxation on Returns	Interest taxable as per income slab	Interest taxable as per income slab	Capital gains tax applies	Tax benefits under Section 80C (India)
Inflation Protection	Low	Moderate	High (over long term)	Moderate to High
Flexibility	Very flexible	Limited flexibility	Flexible investment options	Limited flexibility
Insurance Coverage	No	No	No	Yes (life insurance included)
Who Should Choose It?	People needing easy access to money	Conservative investors wanting stable returns	Investors aiming for higher long-term growth	Individuals wanting insurance + investment together

Conclusion

In 2026, choosing the best savings account interest rates is not optional; it is essential for financial growth. The difference between average and highest interest rate savings account options can multiply your returns without increasing risk. Focus on savings rates, fees, flexibility, and bank credibility. Compare regularly, review annually, and move your money if needed.

FAQs

How is savings account interest calculated in 2026?

Most banks calculate interest on the daily closing balance and credit it monthly or quarterly. The formula typically used is:
Interest = Daily Closing Balance × Interest Rate × (Number of Days ÷ 365)
This method ensures you earn interest for every single day your money remains in the account.
What is the difference between interest rate and APY in savings accounts?
- The interest rate is the base annual rate offered by the bank.
- APY (Annual Percentage Yield) includes the effect of compounding.
If interest is credited monthly, the effective annual return (APY) becomes slightly higher than the stated rate.
Are higher savings account interest rates safe?
Yes, if the bank is regulated by the Reserve Bank of India (RBI). Additionally, deposits up to ₹5 lakh per depositor per bank are insured under DICGC. However, always check:
- Bank credibility
- Financial stability
- Any hidden conditions
Do savings account interest rates change frequently?
Yes. Banks revise rates based on:
- RBI policy changes
- Liquidity conditions
- Competition
- Market trends
- Rates may change multiple times in a year, especially for higher balance slabs.
Is there a minimum balance requirement to earn high interest?
In many banks, higher interest rates apply only if:
- You maintain a certain minimum balance
- Or fall within a specific slab (₹5 lakh+, ₹10 lakh+, etc.)
Failing to maintain the required balance may result in lower interest or penalties.
Can I have multiple savings accounts to maximise interest?
Yes, you can open multiple savings accounts across banks. Many individuals:
- Keep emergency funds in a high-liquidity account
- Maintain surplus funds in high-interest savings accounts
However, ensure you can manage the minimum balance requirements in each account.

˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Past 10 Years' annualised returns as on 01-03-2026

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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