Best Savings Account Interest Rates India 2026
Six top savings accounts compared on interest rate, minimum balance, debit card features, and digital experience. Updated May 2026 — covers traditional banks, small finance banks, and neobanks.
Quick picks
Savings account comparison — interest, balance, features
| Bank | Interest Rate | Min Balance | Best For | Open |
|---|---|---|---|---|
IDFC FIRST Bank FIRST Premium Savings | Up to 7.50% p.a. | ₹10,000 AMB | ₹5L+ idle balance — best risk-adjusted return | Open |
AU Small Finance Bank AU Royale Savings | Up to 7.25% p.a. | ₹5,000 AMB (Royale ₹25,000) | Tiered savers who let balance grow | Open |
Jupiter (Federal Bank) Jupiter Pro Savings | Up to 7.25% p.a. | ₹0 (Pro plan ₹0) | Zero-balance + UPI-heavy users | Open |
NiyoX (Equitas SFB) NiyoX Wealth Savings | Up to 7.00% p.a. | ₹0 | Frequent international spenders | Open |
Kotak Mahindra Bank Kotak 811 Edge | Up to 4.00% p.a. | ₹0 (zero-balance) | Salaried, brand trust + decent rate | Open |
Bandhan Bank Bandhan Savings (Premium) | Up to 7.00% p.a. | ₹5,000 AMB | East India + branch-banking comfort | Open |
Detailed account profiles
IDFC FIRST Bank
- 7.5% on balance up to ₹10 lakh
- Free airport lounge access (premium debit card)
- Cashback on debit card spends
- Free NEFT/IMPS, unlimited UPI
AU Small Finance Bank
- 7.25% on balance ₹5L–₹50L
- Tier-based interest (higher balance = higher rate)
- Free debit card with airport lounge
- Sweep-FD facility for excess balance
Jupiter (Federal Bank)
- Federal Bank-backed (DICGC ₹5L insured)
- Pots feature for goal-based saving
- Insta-rewards on UPI
- Free Visa Platinum debit card
NiyoX (Equitas SFB)
- Zero forex markup on debit (huge for travelers)
- Globally-accepted Visa
- In-app investments (MF, FD, gold)
- Equitas SFB-backed (DICGC ₹5L)
Kotak Mahindra Bank
- Video-KYC account opening in 5 min
- Free virtual debit card instant
- Free RuPay/Visa physical card
- Activ-money sweep-FD up to 7.5%
Bandhan Bank
- 7% on balance ₹1L–₹2 cr
- Free demand draft / NEFT
- Cashless transactions free
- Strong physical branch network in East India
How to choose your savings account
- Pick high-interest accounts only if you keep ₹2L+ idle balance — otherwise zero-balance is better
- Check the interest tier — many banks pay 3% up to ₹1L and 7% only above that
- Watch ATM withdrawal cap — typically 5/month free, then ₹15–25 per transaction
- Free NEFT/IMPS/UPI is standard — check fees on cheque book, demand drafts, branch transactions
- DICGC insurance covers ₹5 lakh per bank — split balance across 2 banks if you keep ₹5L+
- Auto-sweep FD features (HDFC SmartFlex, ICICI iWish, Activ-money) earn FD rate without locking funds
- Salary account vs regular savings — salary accounts often have lower minimum balance and better debit cards
Hidden fees to watch
- •Monthly Average Balance (MAB) penalty — falling below MAB costs ₹100–600/month at private banks
- •Some banks charge for SMS alerts (₹3–15/quarter) and physical statements
- •Debit card annual fee ₹150–500/year — varies by card type (regular vs platinum vs signature)
- •Some neobanks charge for cash deposit at partner bank ATMs (₹15–25 per deposit)
- •Closure within 6–12 months may have a closure fee at some private banks
- •Branch banking is often charged at neobanks — they expect digital-only transactions
Savings account FAQ
Which bank gives the highest savings account interest in India 2026?
IDFC FIRST Bank pays up to 7.5% p.a. on savings balances up to ₹10 lakh — currently the highest among major banks. AU Small Finance Bank and Jupiter offer 7.25%. Big private banks (HDFC, ICICI, Axis) pay only 3–4% on regular savings, but their auto-sweep FD features (Activ-money, SmartFlex) can effectively earn 6–7%.
Are neobanks like Jupiter and NiyoX safe?
Yes. Neobanks are partnered with regulated banks (Jupiter with Federal Bank, NiyoX with Equitas SFB). Your deposits get DICGC insurance up to ₹5 lakh per bank, identical to traditional banks. Operationally, neobanks are mobile-first with no physical branches — fine for most users but a downside if you need cheque deposits or branch services.
Should I keep all my savings in one account?
If you have over ₹5 lakh in savings, split across 2 banks to maximize DICGC insurance (₹5L per bank). Typical split: high-interest savings (IDFC FIRST or Jupiter) for active money, sweep-FD account (HDFC, ICICI, AU SFB) for excess that earns FD rate. For above ₹15L, also consider liquid mutual funds for slightly higher returns at near-instant liquidity.
What is auto-sweep FD?
Auto-sweep automatically converts excess savings balance above a threshold (typically ₹25,000) into short-term FDs (7–365 days). When you spend or transfer money out, the FD breaks automatically and refunds the savings. You earn FD rate (6.5–7.5%) instead of savings rate (3–4%) on the swept portion. Available at HDFC (SmartFlex), ICICI (iWish), Kotak (Activ-money), and AU SFB.
How much interest is taxable on savings account?
Interest above ₹10,000/year is taxable as 'Income from Other Sources' under Section 80TTA (raised to ₹50,000 for senior citizens under 80TTB). TDS is deducted by banks if interest exceeds ₹40,000/year (₹50,000 for seniors) for salaried account holders. Add interest to your ITR — banks send Form 26AS / AIS automatically.
Salary account vs savings account — which is better?
If your employer can credit salary to your chosen bank, salary accounts are typically better — they often waive minimum balance requirements, offer free debit cards, and bundle perks like personal loan pre-approvals. Most modern salary accounts (Jupiter Pro, NiyoX, Kotak 811, IDFC FIRST) double as high-yield savings accounts. The two-account problem largely went away post-2020.
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