Several major banks have revised their savings account interest rates, with Canara Bank, Bank of India, and IDFC FIRST Bank implementing new rates from September 1, 2026. According to reports from Business Standard and The Economic Times, these changes bring advertised savings rates as high as 7% per annum into focus, though the highest rates apply to specific balance slabs rather than all customers. The latest updates show Canara Bank offering rates from 2.50% to 4% per annum, Bank of India presenting a range of 2.50% to 6.25%, and IDFC FIRST Bank topping with rates from 2.50% to an impressive 7.00%, depending on the deposit amount. Canara Bank's revised rates came into effect from September 5, 2026, while Bank of India and IDFC FIRST Bank's revised rates became effective from September 1, 2026.
Canara Bank has revised interest rates for domestic, NRE and NRO savings accounts with rates ranging from 2.50% to 4% per annum. As reported by Business Standard, for balances up to ₹100 crore, the rate is 2.50%, increasing to 2.65% for balances from ₹100 crore to less than ₹300 crore. The subsequent slabs include 3.10% for ₹300 crore to less than ₹500 crore, 3.40% for ₹500 crore to less than ₹1,000 crore, 3.55% for ₹1,000 crore to less than ₹2,000 crore, and 4% for balances of ₹2,000 crore and above. Most retail customers will remain in the 2.50% slab, with higher rates primarily applicable to very large institutional or high-value balances. Customers maintaining balances above ₹500 crore and up to ₹1,000 crore will earn 3.00% per annum, while balances above ₹1,000 crore and up to ₹1,500 crore receive 3.15%. For balances above ₹1,500 crore and up to ₹2,000 crore, the interest rate is 3.30% per annum, with rates rising sharply to 4.75% for balances above ₹2,000 crore to ₹2,500 crore.
Bank of India offers 2.50% on balances up to ₹50 crore, with rates rising gradually for larger deposits. According to Business Standard, customers with deposits above ₹1,500 crore and up to ₹2,000 crore receive 3.30%, while the rates increase sharply at higher balance levels: 4.75% for balances above ₹2,000 crore to ₹2,500 crore, 5.70% for balances above ₹2,500 crore to ₹3,000 crore, and 6.25% for balances above ₹3,000 crore. The 6.25% rate applies only to balances exceeding ₹3,000 crore, making it inaccessible to ordinary savings account holders. For savings account balances above ₹5 crore, the bank offers an interest rate of 5.00% per annum.
IDFC FIRST Bank offers a different structure with its 7% rate applying to much smaller balances than competitors. As reported by Business Standard, the bank provides 2.50% on balances up to ₹3 lakh, 7% for balances above ₹3 lakh and up to ₹25 lakh, 6.25% for balances above ₹25 lakh and up to ₹5 crore, and 5% for balances above ₹5 crore. This makes the 7% rate considerably more relevant to individual savers, with a customer maintaining ₹10 lakh falling within the 7% slab, subject to the bank's applicable calculation methodology. The bank's rates are effective from September 1, 2026, with the 7% rate being the highest among the three banks. The Economic Times reports that IDFC FIRST Bank has been awarded a BBB- Long-Term and A-3 Short-Term credit rating, underscoring its strong capital position and operational expertise, which enhances its access to international funding and global markets. The stability of its retail deposit base contributes to a solid outlook, setting the stage for IDFC FIRST Bank's future growth and expansion endeavors.
According to Business Standard, the highest advertised rate should not determine where money is kept, as savings accounts primarily provide liquidity and easy access rather than maximizing long-term returns. Higher savings rates can be useful for substantial temporary deposits such as emergency funds, property purchase money, or upcoming tax payments. Customers should verify the rate applicable to their actual balance, check the bank's interest calculation method, and consider whether specific conditions apply to the account. The changes also highlight ongoing competition among banks for deposits, with some private and small finance banks using higher rates to attract customers and increase their deposit base. Unity Small Finance Bank has also offered rates of up to 7% on certain retail balances following its August 2026 revision. The latest updates show IDFC FIRST Bank offering the most competitive rates for smaller balances, making it an attractive option for individual savers. Money Saving Expert's Martin Lewis has also emphasized the importance of high-interest savings accounts for teenagers, with some accounts offering up to 5% per annum and bonus incentives like the Santander 123 Mini children's bank account which pays £50 to new customers aged 13-17.
