Major Indian banks are offering 2.50% per annum as the standard savings account interest rate across most account balances. According to reports from NDTV Profit, State Bank of India provides around 2.50% p.a. across all account balances, while HDFC Bank offers 2.50% p.a. for savings accounts with a minimum average quarterly balance starting from ₹2,500. ICICI Bank gives about 2.5% p.a., with interest calculated daily and credited quarterly in March, June, September and December. Axis Bank offers a similar 2.5% p.a. rate for balances below ₹2,000 crore. These rates remain largely unchanged from previous offerings, providing consistent returns for account holders across major banking institutions.
Small finance banks are providing more competitive rates for higher deposits. As reported by NDTV Profit, Suryoday Small Finance Bank offers tiered savings interest rates with deposits up to ₹1 lakh earning 2.50% per annum, while balances above ₹5 crore to ₹25 crore earn 7.60% p.a.. AU Small Finance Bank provides tiered rates with deposits less than ₹1 lakh earning 2.50% p.a., balances between ₹5 lakh to less than ₹10 lakh earning 3.50%, and higher balances from ₹25 crore to under ₹100 crore receiving 6.75% p.a.. Ujjivan Small Finance Bank offers 2.5% p.a. on up to ₹3 lakh balance, while deposits above ₹3 lakh to ₹5 lakh earn 3.00% p.a., with the highest rates of 7.15% p.a. for balances above ₹25 crore.
Public sector banks are maintaining similar competitive rates. According to reports from NDTV Profit, Bank of Maharashtra, Bank of India and Punjab National Bank, among other public sector lenders, also offer similar rates to their private counterparts. These institutions provide consistent interest rate structures across their savings account offerings, ensuring customers have access to competitive rates regardless of their preferred banking sector. The public sector banks maintain competitive positioning with their private counterparts, offering similar rate structures and providing customers with alternative banking options.
A significant consideration for savings account holders is the minimum balance requirement. As reported by NDTV Profit, many lenders expect customers to maintain a minimum balance, and failing to do so can lead to penalties. While comparing interest rates matters, customers should also examine the minimum balance and other requirements to avoid financial distress. This factor becomes particularly important for customers who may not have consistent high balances in their accounts, as maintaining the required minimum balance is essential to avoid additional charges and fees.
