A person puts her money in a savings account at a bank. She chooses a savings account because we know that in a savings account we get some interest rate on our deposits. But exactly how much money we get if we put it in a savings account?
Please go through our previous post – How does a Bank make a profit ?
Every bank has a different strategy to calculate its interest rate. Commercial banks seek profit, which is their goal, and to do so, they provide loans with higher interest rates than the interest rates on deposits. This interest rate difference is the bank’s profit.
Interest Rates of different banks
Since 2011 the RBI deregulated the interest rates on savings accounts. Due to this decision, the banks can now decide on their own the savings account interest rates. According to the RBI rule, the interest is calculated on the basis of the last closing balance of the day in your account.
DISCLAIMER – The interest rates of the banks keep changing on the basis of market forces and the RBI’s monetary policy. So, these are not the final calculations and it keeps changing. These percentages of interest rates are based on September-October 2025 figures.
Here is the information about the interest rates we can earn on our deposits if we put our money in a savings account at the following banks:
Savings Account Interest Rates
Banks with same interest rate across all balance slabs
- 1.SBI (State Bank of India) –
- The SBI offers a 2.5% interest rate per annum (yearly basis) on all savings accounts across all balance slabs. Which means one who deposits Rs.10000 and one who deposits Rs.10000000 both will get 2.5% interest on their deposits per year.
- While the interest is calculated on your daily closing balance, the actual payment (crediting) to your account happens every quarter. The final amount we get at the end of a year is the result of quarterly compounding.
- E.g.- If we put 1000 rupees in a savings bank account of SBI and do not add or withdraw the money, then we will get 1025.24 rupees as the final amount at the end of one year’s term. Which means the interest we earned is Rs.25.24 in a year.
- 2. HDFC Bank –
- The HDFC Bank offers a 2.5% interest rate p.a. on all savings accounts across all balances.
- The interest is paid on a quarterly basis, meaning you will get the interest money every three months in your account.
- E.g.- If you put 1000 rupees in a savings bank account of HDFC Bank and do not add or withdraw the money, then you will get 1025.24 rupees as the final amount at the end of one year’s term. Which means the interest you earned is Rs.25.24 in a year.
- 3. ICICI Bank –
- The ICICI Bank also offers the same rates as of SBI and HDFC Bank.
- 2.5% p.a. across all balance slabs on savings accounts.
- Further calculations are same as SBI and HDFC Bank.
Banks with different interest rates across different balance slabs
4. Punjab National Bank –
The PNB offers different interest rates for different balances maintained in an account.
The interest is disbursed on a half-yearly period. i.e. twice a year.
With effect from 1 October 2025 👇
| Balance Slab | Interest Rate (per annum) |
| Saving Fund Account Balance Up to Rs. 100 Crore | 2.50% p.a. |
| Saving Fund Account Balance > Rs. 100 Crore ≤ Rs. 500 Crore | 2.70% p.a |
| Saving Fund Account Balance > Rs. 500 Crore ≤ Rs. 1,000 Crore | 3.60% p.a. |
| Saving Fund Account Balance > Rs. 1,000 Crore ≤ Rs. 2,000 Crore | 3.75% p.a. |
| Saving Fund Account Balance > Rs. 2,000 Crore | 4.25% p.a. |
5. Bank of Baroda –
BoB gives us higher interest rates on higher value deposits.
| Account Balance | Interest Rates (per annum) |
| Up to Rs. 1 lakh | 2.50% |
| Above Rs 1 Lakh to less than Rs. 50 Lakh | 2.50% |
| Rs. 50 Lakh and less than Rs. 10 Crores | 2.50% |
| Rs. 10 Crores and above to less than Rs. 50 Crores | 2.50% |
| Rs. 50 Crores and above to less than Rs. 100 Crore | 2.75% |
| Rs. 100 Crores and above to less than Rs. 200 Crores | 2.75% |
| Rs. 200 Crores and above to less than Rs. 500 Crores | 2.75% |
| Rs. 500 Crores and above to less than Rs. 1,000 Crores | 3.50% |
| Rs. 1,000 Crores and above to less than Rs. 2,000 Crores | 4.50% |
| Rs. 2,000 Crores and above | 4.75% |
6. Canara Bank –
Higher interest rates for higher value deposits.
These rates started in July 2025, and are the updates of October 2025.
| Account Balance | Interest Rate (per annum) |
| For an outstanding Balance of less than Rs. 50 Lakh | 2.55% |
| For an outstanding Balance of Rs. 50 Lakh to less than Rs 5. Crore | 2.55% |
| For an outstanding Balance of Rs. 5 Crore to less than Rs. 10 Crore | 2.55% |
| For an outstanding Balance of Rs. 10 Crore to less than Rs. 100 Crore | 2.55% |
| For an outstanding Balance of Rs. 100 Crore to less than Rs. 200 Crore | 2.65% |
| For an outstanding Balance of Rs. 200 Crore to less than Rs. 300 Crore | 3.10% |
| For an outstanding Balance of Rs. 300 Crore to less than Rs. 500 Crore | 3.10% |
| For an outstanding Balance of Rs. 500 Crore to less than Rs. 1000 Crore | 3.40% |
| For an outstanding Balance of Rs. 1000 Crore & less than Rs. 2000 Crore | 3.55% |
| For an outstanding Balance of Rs. 2000 Crore & above | 4.00% |
7. Axis Bank –
Since June 2025 the bank offers two rates for two balance slabs.
MIBOR is the inter-banking interest rate through which banks lend money for a very short period to another bank.
| Balance slab | Interest Rate (per annum) |
| less than 2000 crores | 2.5% |
| 2000 crores and above | MIBOR + 0.7 % |
- 8. Union Bank of India –
- The bank has different interest rates for different values of deposits.
| Balance | Interest Rates (per annum) |
| Up to Rs 50 Lakhs | 2.50% |
| > Rs 50 lakhs to Rs 100 Crores | 3.00% |
| > Rs 100 Crs to Rs 500 Crores | 3.40% |
| > Rs 500 Crs to Rs 1000 Crores | 4.25 % |
| > Rs 1000 Crs to 2000 Crores | 4.50 % |
| Above Rs 2000 Crores | 4.75 % |
- 9. Bank of India –
- With effect from August 2025.
- Different Rates for different balance slabs.
| Savings Deposits | Interest Rates (per annum) |
| Up to ₹1.00 lakhs | 2.50% |
| Above ₹ 1 lakh to up to ₹ 50 Lakhs | 2.50% |
| Above ₹ 50 lakh to up to ₹ 500 Crores | 2.75% |
| Above ₹ 500 Crores to up to ₹ 1000 Crores | 3.00% |
| Above ₹ 1000 Crores to up to ₹ 1500 Crores | 3.15% |
| Above ₹ 1500 Crores to up to ₹ 2000 Crores | 3.30% |
| Above ₹ 2000 Crores to up to ₹ 2500 Crores | 3.50% |
| Above ₹ 2500 Crores | 3.65% |
- 10. Indian Bank –
- The bank has reduced the interest rates since July 2025.
| Balance slabs | Interest Rates (per annum) w.e.f. July 2025 |
| Up to Rs.10 lakh | 2.50% |
| More than Rs.10 lakh to less than Rs.200 Cr | 2.60% |
| Rs. 200 Cr and above | 2.65% |
The interest rate on the savings account may change, so it is kindly advised to check the interest rates on the official websites of the given banks.
Thank You.