Best Savings Account Interest Rates for 2025 in India

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:

*Interests rates are updated as on 6th January 2025.

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:

*Interests rates are updated on 6th January 2025.

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:

*Interest rates are updated on 6th January 2025.

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:

*Interest rates are updated on 6th January 2025.

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:

*Interest rates are updated on 6th January 2025.

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.

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.

For the first Rs. 1 Lakh, you will earn an interest rate of 3.25% on Rs. 1,00,000. Thus, the interest calculated will be:

(1,00,000 x 3.25/100) = Interest earned on amount of Rs. 1,00,000 would be Rs. 3,250.

For the next Rs. 1 Lakh, the bank will provide an interest rate of 3.50 on the amount. Thus, the interest calculated will be:

(1,00,000 x 3.50/100) = Interest earned on amount of Rs. 1,00,000 would be Rs. 3,500.

For the remaining Rs. 1 Lakh, you will again get interest at a rate of 3.50%. Thus, the interest calculated will be:

(1,00,000 x 3.50/100) = Interest earned on amount of Rs. 1,00,000 would be Rs. 3,500.

Thus, the total interest that you will earn by the end of the year is Rs. 10,250.  The total amount that you will have by the end of the year will be Rs. 3,10,250.

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.

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:

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:

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.

Note: The information on this page may not be updated. Kindly refer to the bank website to check the latest information.