When choosing a savings account, most people focus on safety and convenience. But in 2025, with savings account interest rates fluctuating across the country, comparing what different banks offer is more important than ever.
Whether you want to park your emergency fund, save for a goal, or just keep your money secure, the interest your bank pays can make a real difference. This guide makes it easy: we break down the latest savings account interest rates (as of October 2025) for government and private banks, sort them from lowest to highest, and help you understand which account might suit you best.
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Why Interest Rates Matter
A savings account pays you interest for keeping your money in the bank. The higher the rate, the faster your balance grows, even if at a modest pace. Though differences may look small, over months and years, small percentages add up, especially on larger balances.
Government Banks – Savings Account Interest Rates (2025)
Government banks offer solid safety and a wide branch network, but generally have lower savings account interest rates compared to private and small finance banks. Still, for many, they’re a preferred choice for peace of mind.
| Bank Name | Interest Rate (p.a.) | Minimum Balance Required |
| Standard Chartered Bank | 0.50% – 3.25% | Rs. 10,000 |
| State Bank of India (SBI) | 2.50% – 2.70% | NIL |
| Punjab National Bank | 2.70% | Rs. 500 – 2,000 |
| Bank of Baroda | 2.75% – 3.35% | Rs. 500 – 1,000 |
| Bank of India | 2.75% | Rs. 1,000 |
| Indian Bank | 2.80% | Rs. 250 |
| Canara Bank | 2.90% – 3.55% | Rs. 500 – 1,000 |
| UCO Bank | 3.50% – 4.00% | Rs. 250 – 1,000 |
| Union Bank of India | 3.00% – 6.20% | NIL |
Most government banks offer 2.5%–3.5%, but a few, like Union Bank and UCO Bank, provide higher rates for larger balances or special categories.
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Private Banks – Savings Account Interest Rates (2025)
Private sector banks are known for better digital services and attractive offers. Many of them reward higher balances with higher rates, making them a smart pick for savvy savers.
| Bank Name | Interest Rate (p.a.) | Minimum Balance Required |
| Citi Bank | 2.50% | Rs. 25,000 |
| HDFC Bank | 3.00% – 3.25% | Rs. 2,500 – 10,000 |
| ICICI Bank | 3.00% – 3.50% | Rs. 1,000 – 10,000 |
| Axis Bank | 3.00% – 3.50% | Rs. 10,000 |
| Kotak Mahindra Bank | 3.50% | Rs. 5,000 – 10,000 |
| DBS Bank/ Digibank | 3.25% – 7.00% | Rs. 5,000 |
| IDFC FIRST Bank | 4.00% – 6.00% | Rs. 10,000 – 25,000 |
| IndusInd Bank | 3.50% – 5.50% | Rs. 5,000 – 10,000 |
| Yes Bank | 4.00% – 6.00% | Rs. 10,000 – 25,000 |
| RBL Bank | 4.25% – 6.25% | Rs. 2,500 – 25,000 |
| DCB Bank | 2.25% – 7.00% | Rs. 10,000 |
| Bandhan Bank | 3.00% – 6.50% | Rs. 5,000 – 1,00,000 |
Many private banks, especially the newer ones and small finance banks, offer 6% or more for higher slabs. However, higher rates often come with higher minimum balance or account type requirements.
Small Finance and Digital-Only Banks
- AU Small Finance Bank: 3.5% – 7.00%
- Equitas Small Finance Bank: 3.5% – 7.00%
- Ujjivan Small Finance Bank: 4.0% – 7.00%
- ESAF Small Finance Bank: 4.0% – 6.50%
- Jana Small Finance Bank: 3.0% – 6.50%
- Utkarsh Small Finance Bank: up to 6.75%
These challenger banks focus on higher rates and digital convenience, but always check credibility, customer reviews, and network reach before committing large amounts.
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Savings Account Interest Rates 2025: Low to High (2025)
| Interest Rate | Bank(s) / Type |
| 0.50% | Standard Chartered (basic slab) |
| 2.25%–2.75% | DCB, SBI, Punjab National, Bank of Baroda, Citi Bank, Indian Bank |
| 2.80%–3.50% | Canara, UCO, HDFC, ICICI, Axis, Kotak Mahindra, IndusInd |
| 3.50%–4.00% | Kotak Mahindra, Bandhan, UCO, IDFC FIRST, YES Bank |
| 4.00%–6.25% | RBL, YES, IndusInd, DCB, Bandhan, ESAF, AU, Equitas, Jana |
| 6.50%–7.00% | Select slabs at DCB, Bandhan, AU, Ujjivan, Equitas, Digibank |
| 7.00%+ | Only in small finance/digital banks at higher slabs |
Always verify the current rate on the bank’s website, as they change frequently and may depend on the amount deposited or the type of savings account.
What Else Should You Know Before Choosing a Savings Account?
- Minimum Balance: Some private banks and SFBs demand higher minimum balances for their best rates.
- Compound Frequency: Quarterly or monthly compounding means faster growth.
- Additional Services: Free ATM/debit cards, mobile banking, and fund transfer features can add value.
- Digital Banking: Online account opening, UPI, and instant fund transfers are common perks.
- Safety: Government banks offer top-tier safety, while private and SFBs are safe but should be researched for stability.
Practical Tips for Savvy Savers
- Keep Emergency Funds in Top-Rated Banks: Choose for safety and easy access, even if it’s a slightly lower rate.
- Split Large Balances: Consider multiple accounts to maximize high-interest slabs and minimize risk.
- Don’t Chase Rates Blindly: Read terms-sometimes, very high rates apply only to higher or specific slabs.
- Stay Updated: Bank rates change often. Review periodically to benefit from better offers.
Final Thoughts
Whether you choose a government bank for peace of mind or a private/small finance bank for higher returns, the savings account interest rates are aligned with your priorities. In 2025, interest rates in India typically range from 2.5% to 7% p.a., so compare carefully, check requirements, and let your savings work as hard as you do!
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