Looking to Earn More From Your Savings?
Highest Savings Account Interest Rate: A Savings account keeps your money safe and also pays interest on it. Many banks in India are offering interest ranging from 2.5% to 8% in 2025. This interest is calculated on the daily balance, and most banks credit monthly or quarterly. Here is a list of the 10 best banks that offer the highest interest rate on savings accounts and cool features.
Table of Contents
Top 10 Banks Offering the Highest Savings Account Interest Rate
- ESAF Small Finance Bank
Interest rate: 4% – 8% (8% on 15 lakh+)
Minimum balance: ₹1,000
Features: Highest interest rate, monthly credit, digital KYC.
Best for: High-interest seekers.
- AU Small Finance Bank
Interest rate: 3.5% – 7.5% (7.5% on ₹10 lakh+)
Minimum balance: ₹0 (optional)
Features: Zero-fee, digital banking, free ATM.
Best for: digital and high interest.
- IndusInd Bank
Interest rate: 4% – 7% (7% on ₹1 crore+)
Minimum balance: ₹10,000
Features: Custom account number, monthly credit.
Best for: personalized service.
- IDFC FIRST Bank
Interest rate: 3% – 7% (7% on ₹5 lakh+)
Minimum balance: ₹10,000
Features: Zero-fee banking, monthly credit.
Best for: free services and interest.
- DBS Bank
Interest rate: 3.25% – 7% (7% on Rs.5 lakh+)
Minimum balance: ₹5,000
Features: Digital KYC, monthly credit.
Best for: Digital-savvy users.
- RBL Bank
Interest rate: 4.25% – 6.5% (6.5% on Rs.10 lakh+)
Minimum balance: ₹0 (optional)
Features: Cashback offers, digital banking.
Best for: Cashback and zero balance.
- Kotak Mahindra Bank
Interest rate: 3.5% – 4% (3.5% on Rs.50 lakh+)
Minimum balance: ₹0 (811 accounts)
Features: Fast account opening, zero balance.
Best for: Digital and zero balance.
- HDFC Bank
Interest rate: 3% – 3.5% (3.5% on Rs 50 lakh+)
Minimum balance: ₹10,000
Features: Lots of branches, customer service.
Best for: Trusted banks and networks.
- ICICI Bank
Interest rate: 2.75% – 3.5% (3.5% on Rs 50 lakh+)
Minimum balance: ₹10,000
Features: iMobile app, lots of branches.
Best for: Technology and network.
- Axis Bank
Interest rate: 3% – 3.5% (3.5% on Rs 10 crore+)
Minimum balance: ₹10,000
Features: Rewards, discounts, digital banking.
Best for: Rewards and discounts.
How is Savings Account Interest Calculated?
Interest is calculated on a daily balance. Suppose you have Rs 3 lakh in your account, and the bank gives 4% interest. So the formula is:
- Monthly interest = Daily balance x (interest rate/100) x days / 365
- That is, 3,00,000 x (4/100) x 30 / 365 = interest of about Rs 986 per month.
- This interest is credited quarterly or monthly by most banks. And yes, interest up to Rs 10,000 is tax-free (under 80TTA), up to Rs 50,000 for senior citizens.
Must Know the Rule: Saving Bank Account Minimum Balance
Highest Savings Account Interest Rate in India
| Bank | Interest Rate (p.a.) | Minimum Balance | Features |
|---|---|---|---|
| ESAF Small Finance | 4% – 8% | ₹1,000 | Highest Interest Rate, Monthly Credit |
| AU Small Finance | 3.5% – 7.5% | ₹0 (Optional) | Zero-Fee, Digital Banking |
| IndusInd Bank | 4% – 7% | ₹10,000 | Customer Account Number, Monthly Credit |
| IDFC FIRST Bank | 3% – 7% | ₹10,000 | Zero-Fee Banking, Monthly Credit |
| DBS Bank | 3.25% – 7% | ₹5,000 | Digital KYC, Monthly Credit |
| RBL Bank | 4.25% – 6.5% | ₹0 (Optional) | Cashback Offers, Digital Banking |
| Kotak Mahindra | 3.5% – 4% | ₹0 (811 Account) | Fast Account Opening, Zero-Balance |
| HDFC Bank | 3% – 3.5% | ₹10,000 | Customer Service, Branches |
| ICICI Bank | 2.75% – 3.5% | ₹10,000 | iMobile App, Branches |
| Axis Bank | 3% – 3.5% | ₹10,000 | Reward, Discount, Digital Banking |
Conclusion:
Now you decide what your style is. If you want highest interest rate: Choose ESAF, AU, or IndusInd, If you want zero balance: Try Kotak 811, AU, or RBL, If you want branch network: HDFC, ICICI, or Axis are best, If you want digital banking: IDFC FIRST, DBS, or Kotak. By choosing any of these accounts, you can grow your money while keeping it safe. Quickly check the bank’s website, or go to the branch and open an account today.
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