Top 6 Best Savings Bank Account in India based on Interest Rate

Created on 15 May 2020

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Updated on 06 Apr 2024

Top 6 Best Savings Bank Account in India based on Interest Rates

Savings Bank A/c, a basic necessity for everyone, often has a wide range of products that confuse most people. So, today, we’ll clear the clutter & provide you with the ultimate guide to opening a bank account.

To narrow down your choice, you need first to identify your needs based on your current financial situation, existing banking habits, and future needs. You can evaluate the options based on a customer-centric bank offering reasonable interest rates, net banking options, a vast network of ATMs, flexibility in deposits and withdrawals, personal banker services, and overall convenience.

Best banks to open a Savings Account

Under the Savings Bank Account options, you can choose from - Regular, Senior Citizen, Women’s, Students, or Kids Saving Account. In our evaluation, we will analyze the banks in relation to the interest and services they offer. With the recent fiasco of the Yes Bank and the PMC Bank, deposit holders also need to evaluate the financial standing of these banks.

Kotak Mahindra Bank

This bank offers a variety in terms of Savings account features. The main Saving Bank Accounts are Saving Edge, Saving Pro, and Saving Ace, where the AMB (Average Monthly Balance) that needs to be maintained is 10K, 20K, and 50K, respectively. The average interest offered is 3.50 to 4.00% p.a. 

  • You can access your account via net banking or mobile banking at no extra cost.

  • Kotak Mahindra Bank ATMs give you easy access to your money all over the country.

  • One can set up an account for automatic utility bill payments.

  • Scan & Pay facility for in-store purchases

  • In-app features are also available - Shop online using Flipkart, Book travel tickets using Goibibo, or Book movie tickets with PVR.

  • If you are unable to visit the branch, they have a Home banking facility at a nominal charge.

Average Monthly Balance (AMB)

Limited, Lite & Full KYC - Nil

Savings edge – 10,000

Savings pro – 20,000

Savings ace – 50,000

Rate of interest

3.5% up to 1 Lakh

4% above 1 lakh

Mobile banking

Ease of usage



HDFC Bank has always been a favorite option as the bank has many saving account solutions for customers with all types of needs and requirements. The variety of savings accounts is based on gender, occupation, income groups, etc. that make the account ideal for the individual account holder. Some of the outstanding features of HDFC Bank savings accounts are:

  • Ease of banking with facilities like NetBanking, PhoneBanking services, and Mobile Banking

  • Money Maximizer facility, a sweep-out facility 

  • Free insurance benefits like Accidental Hospitalization cover and Accidental Death Insurance cover.

  • Exemplary customer service oriented

Average monthly balance (AMB)

Metro urban – 10,000

Metro semi Urban - 5000

Rural branches - 2500

Interest rates

3.00 to 3.50%

Mobile banking

Biometric login for enhanced security and access. User friendly. SMS updation and e-statement facilities.

Axis Bank

Axis Bank dispenses its customers with the option of choosing from a wide range of Savings Accounts with various features and benefits. The Savings Accounts have been fabricated to meet the banking needs of people from all walks of life.

The Axis Bank card entails you to avail of various discounts or cashback offers every time you shop or eat out at a restaurant. This bank has tie-ups with so many retail outlets that using their debit cards is a rewarding experience. eDGE Loyalty Rewards can be redeemed against 500+ rewards and offers. 

Average monthly balance

Axis accessible savings account – 10,000 (metro and urban) and 5000 (semi-urban)

Axis prime savings account – 25,000 (metro/urban) and 10,000 (semi-urban)

Axis prime plus – 1 lakh

Axis priority  - Quarterly 2 lakhs

Axis Burgundy – Quarterly 10 lakhs

Interest rates

Up to 50 lakh 3.00%

Above 50 lakh 3.50%

Mobile features

More than 60 features available on the mobile app. User friendly


IDFC First Bank

IDFC First Bank is an excellent option for earning interest as high as  5% on your Saving Bank Account. Even with a balance of less than a lac, one is entitled to a 4% interest on your Saving Account Features. The bank offers an elementary Savings Account, but its high interest is the main attraction. It also provides Personal accident insurance – Free cover (death or permanent disability) of Rs. 35 lakh. IDFC FIRST Vishesh Savings Account caters to the needs of the Rural population.

Average monthly balance (AMB)


Interest rates

Up to 1 lakh – 4%

Above 1 lakh and within 10 lakh  - 4.50%

More than 10 lakh the interest rates vary from 3.00 to 5.00%

Mobile banking

More than 40 features available on the mobile app.



ICICI Bank offers a variety of accounts based on your lifestyle. Experience the convenience of any time, anywhere banking with ICICI Bank’s Range of Savings Accounts. Standard transactions such as bill payments, creation of Fixed Deposit (FD) and balance inquiry can be done through multiple channels such as Internet Banking, Mobile Banking, or Customer Care. 

More than 15 varieties of Saving Bank accounts can take a pick from the ICICI range. Their focus is purely on the customers’ needs, and they have designed the product portfolio to suit each one accordingly.

Some of the salient features of their saving account are

  • The 3-In-One account that links your banking, trading, and Demat accounts with their Seamless, Secure, and Integrated 3-in-1 trading platform.

  • Money multiplier enables you to earn higher interest by setting a balance limit above which money in the Savings Account will get converted into Fixed Deposit on request

Average monthly balance (AMB)

Varies between 10,000 to 1,25,000

Interest rates

Up to 50 lakhs – 3.00%

More than 50 lakhs – 3.50%

Mobile banking

iMobile app offers more than 250+ banking and informational services. User friendly and convenient. It is one of the best banking apps.


State Bank of India (SBI)

The country’s largest and oldest bank has a number of Saving Account Options to choose from. However, the Insta SBI Savings Account is an instant savings account, which brings the complete digital banking ecosystem to your mobile. Now you can open a savings account in minutes with the SBI Yono mobile application or from the Yono online portal in a matter of minutes. The benefit of the SBI Savings Account is that the Average Monthly Balance is low compared to the other banks. But yet they offer similar features. 

Average monthly balance (AMB)  

No minimum limit on the monthly balance to be maintained. 

Interest rates


Mobile banking

Yono Lite SBI mobile. The banking app offers more than 30+ banking services. Sluggish needs improvement.


The Bottom Line

The above list is not an exhaustive one but highlights some of the critical features that depositors look forward to at the time of opening an account. One can open multiple accounts with different banks to suit your needs. The cutting edge among all these banks is the customer experience and convenience that one would experience, along with a trust that the Bank will take care of her hard-earned money.

So, if you don't have a savings bank account as of now, it's high time to get one. It's a bare minimum.

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