Interest rates head south: 6 banks that offer over 7% interest on savings deposits

With HDFC Bank and ICICI Bank lowering the interest rates offered on savings deposits, there is a renewed focus on making optimum use of your idle, or surplus, funds in your accounts. Two private sector giants’ accountholders will now earn 2.75 percent annum – down from 3 percent — on their savings balances of up to Rs 50 lakh.

Financial advisors recommend channelising these funds into more productive avenues such as liquid funds, sweep-in fixed deposits that can be easily redeemed in times of emergencies.

This apart, several banks offer significantly higher rates on savings deposits. However, it is wise to factor in other parameters such as convenience, internet banking facilities, branch locations and so on rather than opening accounts only to benefit from higher rates.

Also read: HDFC Bank cuts savings rates: Depositors should explore liquid funds, sweep-in FDs, say financial planners

Here are the top seven banks that are currently offering interest rates of over 7 percent per annum on their savings accounts, as per data from BankBazaar.com:

RBL Bank

This bank’s savings deposit rate is the highest at 7.5 percent. However, this is applicable to balances of between Rs 25 lakh to Rs 3 crore. Balances of up to Rs 1 lakh will fetch 3.5 percent, while deposits of between Rs 1 lakh and Rs 5 lakh will earn 4.5 percent. It offers 5.5 percent to accountholders maintaining savings balances in the range of Rs 5-10 lakh, and 6.5 percent for deposits of Rs 10-25 lakh.

IDFC First Bank

The private sector bank, too, offers a substantially high interest rate of 7.25 percent. The minimum balance required to earn this interest is Rs 10 lakh.

IndusInd Bank

This private sector bank offers an interest rate of 7 percent to savings accountholders who maintain daily balances of over Rs 10 lakh.

YES Bank

The bank offers an interest rate of 7 percent on its savings deposits. This is applicable to customers who maintain daily balances of over Rs 10 lakh.

Bandhan Bank

Customers who maintain end-of-day balance of at least Rs 10 lakh can earn 7 percent returns on their savings deposits.

Also read: Falling interest rates: Senior citizens should lock into longer-term FDs, small saving instruments

AU Bank

This small finance bank offers an interest rate of 7 percent per annum to its savings accountholders. They have maintain balance of at least Rs 10 lakh to be eligible for this rate of return.

Note: Data as on April 16, 2025, as compiled by BankBazaar.com; rates are as per the banks’ websites, and may be revised as per the bank’s policies.