Indicative data · as of 3 October 2026
Savings Lab: What Your Balance Really Earns
Most large Indian banks pay 2.50% p.a. on savings balances, and the headline 7% offers apply only to one balance slab. Enter your usual balance to see what each bank actually pays on it, whether you'd clear its minimum-balance rule, and how much idle money could earn in an FD instead.
Bandhan Bank pays 2.70% on it
2.70% listed up to ₹1 lakh; same rate assumed above. Most big banks pay a flat 2.5%: ₹2,500 a year on this balance.
- +₹200/yr vs 2.5%
- Varies
- 1Bandhan Bank₹2,7002.70% effectiveOpen account
- 2State Bank of India₹2,5002.50% effectiveOpen account
- 3HDFC Bank₹2,5002.50% effectiveOpen account
Every bank on your balance
- 1Bandhan BankVariesMin. balance varies · 2.70% listed up to ₹1 lakh; same rate assumed above₹2,7002.70%Open account
- 2State Bank of IndiaBalance OKNo minimum balance · No minimum balance charges since Mar 2020₹2,5002.50%Open account
- 3HDFC BankBalance OKMin. balance ₹5,000–₹10,000 · Metro/urban AMB; zero-balance variants exist₹2,5002.50%Open account
- 4ICICI BankBalance OKMin. balance ₹5,000–₹10,000 · Metro/urban AMB; lower in rural areas₹2,5002.50%Open account
- 5Axis BankBalance OKMin. balance ₹5,000–₹25,000 · AMB depends on variant and location₹2,5002.50%Open account
- 6Kotak Mahindra BankVariesMin. balance varies · AMB varies by variant; 811 has its own terms₹2,5002.50%Open account
- 7Punjab National BankBalance OKNo minimum balance · Up to 4.25% on higher slabs (breakpoints not published here, not counted)₹2,5002.50%Open account
- 8IDFC First BankBalance OKMin. balance ₹25,000 · 7% only on the ₹3L–₹25L slab (w.e.f. Sep 1, 2026)₹2,5002.50%Open account
Idle money meter
Your balance is close to a sensible emergency buffer. Keep it liquid; savings rates matter less at this size.
Tax break
Savings interest up to ₹10,000 a year is deductible under Section 80TTA (₹50,000 for seniors under 80TTB) in the old regime.
Minimum balance trap
Falling below a bank's average monthly balance can cost ₹500–₹600 a quarter, more than the extra interest on small balances. Rates as of 3 October 2026.
Full comparison table
| Bank | Interest slabs | Min. balance / AMB | Notes |
|---|---|---|---|
| State Bank of India | Flat 2.50% | Nil | No minimum balance charges since Mar 2020 |
| HDFC Bank | Flat 2.50% | ₹5,000–₹10,000 AMB | Metro/urban AMB; zero-balance variants exist |
| ICICI Bank | Flat 2.50% | ₹5,000–₹10,000 AMB | Metro/urban AMB; lower in rural areas |
| Axis Bank | Flat 2.50% | ₹5,000–₹25,000 AMB | AMB depends on variant and location |
| Kotak Mahindra Bank | Flat 2.50% | Varies by variant | AMB varies by variant; 811 has its own terms |
| Punjab National Bank | Flat 2.50% | Nil | Up to 4.25% on higher slabs (breakpoints not published here, not counted) |
| IDFC First Bank | 2.50% up to ₹3L · 7.00% ₹3L–₹25L · 6.25% above ₹25L | ₹25,000 AMB | 7% only on the ₹3L–₹25L slab (w.e.f. Sep 1, 2026) |
| Bandhan Bank | Flat 2.70% | Varies by variant | 2.70% listed up to ₹1 lakh; same rate assumed above |
Level up before you decide
Read the tips and open the questions to earn XP. Knowing the fine print is how you actually win.
- Tip Collector
- FAQ Master
- Source Checker
Pro tips for your savings
- TIP 01
Check the rate on YOUR balance
A 7% headline rate on ₹3–25 lakh means nothing if you keep ₹40,000 — you'd earn the base 2.50%.
- TIP 02
Penalties compound the gap
A ₹500–₹600 quarterly shortfall penalty wipes out the interest on a modest balance; zero-balance-friendly banks win for thin balances.
- TIP 03
BSBD accounts are the safety net
Every bank must offer a Basic Savings Bank Deposit account with no minimum-balance requirement.
Questions people ask
Q01Which bank gives the highest savings account interest in India?+30
Among large banks, IDFC First Bank advertises up to 7.00% p.a. on balances between ₹3 lakh and ₹25 lakh (as of September 2026). Most other major banks — SBI, HDFC, ICICI, Axis, Kotak — pay a flat 2.50% p.a. Note that the high headline rate applies only to a specific balance slab, not your whole balance.
Q02What is the minimum balance requirement for a savings account?+30
It depends on the bank and account variant. SBI and PNB have waived non-maintenance charges entirely, so there is effectively no penalty. HDFC, ICICI and Axis typically require an average monthly balance of ₹5,000–₹10,000 in metro/urban areas on standard accounts, with penalties of roughly ₹500–₹600 per quarter for a shortfall.
Q03How is savings account interest calculated and paid?+30
Interest is calculated on your daily closing balance and usually credited quarterly — commonly at the end of March, June, September and December. Some banks credit monthly. Interest up to ₹10,000 a year is deductible under Section 80TTA (₹50,000 for senior citizens under 80TTB).
Q04Is a zero-balance savings account really free?+30
Basic Savings Bank Deposit (BSBD) accounts have no minimum-balance requirement by regulation, and several banks offer zero-balance digital accounts. They may cap free transactions or debit-card features, so read the schedule of charges before choosing one as your primary account.
Q05Should I chase the highest savings rate?+30
Treat it as one input among several: the difference between 2.50% and 7% on a ₹1 lakh balance is about ₹4,500 a year before tax — meaningful, but service quality, app reliability, branch access and penalty structures matter too. Large idle balances often earn more in an FD or sweep-in facility.
Where the numbers come from
- HDFC Bank — official interest rates pagehdfc.bank.in
- State Bank of India — official sitesbi.co.in
- DICGC (Reserve Bank of India) — deposit insurance up to ₹5 lakhdicgc.org.in