The Interest rate provided on a savings account varies depending on which bank you are holding your savings. Moreover, the banks usually tends to provide 0.50% higher interest rate to senior citizens holding savings accounts in their banks, where sweep-out facility is applicable.

Apart from the banks, one can also open a savings account at any of the Indian Post office with interest rate earnings of 4% per annum.

## Savings Account Interest Rate by Different Banks

Banks | Annual Interest Rates |
---|---|

HDFC Bank | 3.50% For Account Balance less than Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs to less than Rs. 500 Crs. 5.77% For Account Balance above Rs. 500 Crs. |

SBI | 3.00% For Account Balance above Rs. 1 Lac 3.50% For Account Balance upto Rs. 1 Cr. 4.00% For Account Balance above Rs. 1 Cr. |

ICICI Bank Upto 7.50% under Saving Accounts with Money Multiplier Plan | 3.50% For Account Balance less than Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

Axis Bank Upto 7.10% under ASAP Instant Account | 3.50% For Account Balance less than Rs. 50 Lacs 4.00% For Account Balance Rs. 50 Lacs to less than Rs. 100 Crs. 5.50% For Account Balance above Rs. 100 Crs. to less than Rs. 200 Crs. 6.00% For Account Balance above Rs. 200 Crs and above. |

Citibank | 4.00% – 4.50% |

Standard Chartered Bank Upto 7.10% under eSaver Account | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

YES Bank | 5.00% For Account Balance upto Rs. 1 Lac 6.00% For Account Balance above Rs. 1 Lac to upto Rs. 1 Cr. 6.25% For Account Balance above Rs. 1 Cr to upto Rs. 100 Crs. |

Kotak | 4.00% For Account Balance upto Rs. 1 Lac 6.00% For Account Balance above Rs. 1 Lac to upto Rs. 1 Cr. 5.50% For Account Balance above Rs. 1 Cr |

Canara Bank | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

PNB Upto 7.90% under PNB Shikshak Sweep Account | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

City Union Bank | 4.00% |

Central Bank of India | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

Bank of India Upto 8.25% under BOI Savings Plus Account | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

Bank of Baroda Upto 6.55% under Super Savings Account | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

Bank of Maharashtra | 3.50% For Account Balance upto Rs. 25 Lacs 4.00% For Account Balance above Rs. 25 Lacs |

IDBI Bank | 3.50% For Account Balance upto Rs. 25 Lacs 4.00% For Account Balance above Rs. 25 Lacs |

IDFC First | 6.00% For Account Balance upto Rs. 1 Lac 7.00% For Account Balance above Rs. 1 Lac to upto Rs. 250 Crs. 8.50% For Account Balance above Rs. 250 Crs. |

Indusind Bank | 4.00% For Account Balance upto Rs. 10 Lacs 5.00% For Account Balance above Rs. 10 Lacs to upto Rs. 1 Cr. 6.00% For Account Balance above Rs. 1 Cr. |

Bandhan Bank | 4.00% For Account Balance upto Rs. 1 Lac 6.00% For Account Balance above Rs. 1 Lac to upto Rs. 10 Crs. 6.55% For Account Balance above Rs. 10 Crs. to upto Rs. 50 Crs. 7.00% For Account Balance above Rs. 50 Crs. |

Federal Bank | 3.50% For Account Balance less than Rs. 50 Lacs 4.00% For Account Balance Rs. 50 Lacs to less than Rs. 10 Crs. 6.30% For Account Balance Rs. 10 Crs. to less than Rs. 25 Crs. 6.51% For Account Balance Rs. 25 Crs. to less than Rs. 250 Crs. 7.20% For Account Balance of Rs. 250 Crs. and above. |

Andhra Bank | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

Allahabad Bank Upto 6.25% under AllBank Shakti Saving Account & Upto 6.50% under AllBank Savi-fix Account | 3.50% For Account Balance less than Rs. 40 Lacs 4.00% For Account Balance of Rs. 40 Lacs and above |

Indian Bank Upto 6.50% under SB Platinum Account | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs |

Indian Overseas Bank | 3.50% For Account Balance upto Rs. 25 Lacs 4.00% For Account Balance above Rs. 25 Lacs |

RBL Bank | 5.50% For Account Balance less than Rs. 1 Lac 6.00% For Account Balance Rs. 1Lac to upto Rs. 10 Lacs 6.75% For Account Balance Rs. 10 Lacs to upto Rs. 5 Crs. |

Corporation Bank | 3.50% For Account Balance less than Rs. 50 Lacs 4.00% For Account Balance of Rs. 50 Lacs and above. |

Abhyudaya Cooperative Bank | 4.00% |

Abu Dhabi Commercial Bank | 4.00% |

OBC | 3.50% |

Syndicate Bank | 3.50% For Account Balance upto Rs. 25 Lacs 4.00% For Account Balance above Rs. 25 Lacs. |

Union Bank of India Upto 6.75% under Union Flexi Savings & Union Flexi Plus Savings Account | 3.50% For Account Balance upto Rs. 25 Lacs 4.00% For Account Balance above Rs. 25 Lacs. |

United Bank of India | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs. |

Punjab & Sind Bank | 3.50% For Account Balance upto Rs. 20 Lacs 4.00% For Account Balance above Rs. 20 Lacs. |

UCO Bank | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs. |

Catholic Syrian Bank | 3.50% For Account Balance less than Rs. 1 Lac 4.00% For Account Balance of above Rs. 1 Lac to upto Rs. 50 Lacs 5.00% For Account Balance of above Rs. 50 Lacs to upto Rs. 10 Crs. 6.00% For Account Balance of above Rs. 10 Crs. to upto Rs. 20 Crs. 6.75% For Account Balance of above Rs. 20 Crs. |

DCB Bank | 4.00% For Account Balance less than Rs. 1 Cr 6.25% For Account Balance of Rs. 1 Cr. to less than Rs. 5 Crs. 6.50% For Account Balance of Rs. 5 Crs. and above. |

Dhanlaxmi Bank | 3.50% For Account Balance upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs. |

Jammu & Kashmir Bank | 3.50% |

HSBC Bank | 3.50% |

Karnataka Bank | 3.00% For Account Balance upto Rs. 1 Lac 3.50% For Account Balance above Rs. 1 Lac to upto Rs. 50 Lacs 4.00% For Account Balance above Rs. 50 Lacs to upto Rs. 1 Cr. 5.00% For Account Balance above Rs. 1 Cr. |

Karur Vysya Bank | 4.00% |

Lakshmi Vilas Bank | 4.00% For Account Balance upto Rs. 1 Lac 5.25% For Account Balance above Rs. 1 Lac to upto Rs. 5 Lacs 6.25% For Account Balance above Rs. 5 Lacs to less than Rs. 10 Crs. 6.50% For Account Balance of Rs. 10 Crs. and above. |

## How to Calculate Interest Rates on Savings Account?

The calculation of the interest rate on a savings account is done on a daily closing balance and paid into the account on a quarterly or half-yearly basis.

- Daily Ending Balance is the total amount available in your savings account at the end of a day.
- Rate of interest is as provided by the bank / post office.
- 365 denotes the total number of days in a financial year. If it’s a leap year, then 366 is applicable in place of 365 for calculation.

If you’re holding a savings account with sweep-in and sweep-out facility, then the rate of interest applicable on excessive amount above the preset limit will be calculated based on the interest rate offered by the bank for fixed deposit based on the number of days the amount is being kept in the fixed deposit.

However, it comes with a limit and most of the banks offer maximum 180 days period for interest on excessive amount under sweep out facility.

## Tax Deductions on Savings Accounts Interest Earning

The interest amount that you earn in your savings account is considered to be income from other sources, and any interest savings earned in a financial year is taxable.

However, a savings account holder can claim tax benefits of maximum Rs. 10,000 against total interest amount earned under Income Tax Section 80TTA.