Best Savings Account Interest Rates in India — April 2026
IDFC First Bank leads with 6% p.a. savings rate, significantly above the industry average of 3%. Yes Bank offers 4%, Kotak 3.50%. Traditional PSU banks SBI and PNB offer just 2.70% but provide unmatched branch coverage across India. Consider both the interest rate and minimum balance requirement before choosing.
Last updated: April 6, 2026
Best Savings Account Banks — Ranked April 2026
#1Best pick
IDFC First6.00%
Highest rate in India — fully digital
#2
Yes Bank4.00%
Great rate — strong private bank
#3
Kotak3.50%
Average rate
#4
HDFC3.00%
Average rate
#5
ICICI3.00%
Average rate
#6
Axis3.00%
Average rate
#7
Bank of Baroda2.75%
Average rate
#8
Canara2.75%
Average rate
#9
SBI2.70%
Lowest rate — choose for PSU trust & branch access
#10
PNB2.70%
Lowest rate — choose for PSU trust & branch access
Frequently Asked Questions
Which bank gives highest savings account interest in India 2026?+
IDFC First Bank offers 6% p.a. on savings balances above ₹1L — the highest among major scheduled commercial banks. Small finance banks like AU SFB and Equitas offer similar or higher rates.
Is savings account interest taxable?+
Yes. Interest above ₹10,000/year is taxable as "Income from Other Sources". Banks deduct TDS at 10% if total interest exceeds ₹10,000 in a year. You can claim ₹10,000 deduction under Section 80TTA.
Should I choose IDFC First Bank for savings account?+
IDFC First is excellent for high interest and zero-balance digital accounts. However, it has fewer branches than SBI/HDFC. If you need regular cash deposits or a physical branch nearby, SBI or HDFC is more practical.
Disclaimer: Rates are indicative as of April 2026 and subject to change. This is for informational purposes only. Verify with the bank before making financial decisions.