Do you know that savings account interest income (up to Rs. 10,000) is tax-free?
Private banks offer higher interest rate but they have some hidden clauses as well.
I did research on major Indian banks to find the best savings account in India. You should also consider technology, customer support, and extra benefits that banks provide with a savings account.
Prefer a bank that has low maintenance charges and gives you a discount on their products like loans and credit cards.
From the article, you can pick the best bank for a savings account in India as per your need.
At the end of the article, you can find the list of best banks offering zero balance accounts and the savings bank interest rates comparison.
Best Savings Bank Account in India
#1. IndusInd Bank Savings Account (Zero Balance Account)
IndusInd Bank offers IndusStox 3-in-1 account by collaborating with Upstox (one of the best stock brokers in India). The savings bank account has a good value proposition in terms of zero minimum balance requirements and great features.
You will get saving account, trading account and Demat account free of cost (no account opening charges) on opening IndusStox account.
You will get a titanium debit card and earn up to 5X to 6X rewards points per 200 rupees spent on all your debit card transactions. You can use the rewards towards brokerage charges while making profits in the stock market.
If you are an active trader or stock investor, then this is the best opportunity for you due to
- Free Demat & Trading account
- Zero brokerage on delivery
- Fix brokerage of Rs 20 per trade even if you make a trade of Rs 1 cr
- No hassle to fund transfer from saving account to Demat account and vice versa.
Benefits of IndusStox Account
- No minimum balance required
- You will earn interest on funds allocated from your Savings a/c for trade
- Customizable account number (birthday or anniversary)
- Free demat & trading account opening
- Zero brokerage on delivery
- The fixed brokerage of ₹20 per intraday trade
| Rate of Interest (on daily balance) | Up to 1 Lac – 4% Up to 10 Lac- 5% (6% after that) |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average |
Best For
If you are active stock investor then this is the best saving account for you. In case, you are looking for a zero balance account even then its a great opportunity.
#2. ICICI Bank Savings Account (For Best Technology)
Opening a savings bank account with ICICI is like banking at fingertips with 200+ banking services offered online.
The amazing tech experience starts with iMobile banking app which is user-friendly and is secured using PKI end-to-end 265-bit encryption.
You can check transactions and balances, transfer funds, open MF, FD, RD PPF and NPS accounts, pay bills and insurance premiums, book tickets and even manage your Demat account portfolio with iMobile.
Best For
Individuals who are tech-savvy, have no time for branch visit and like to use mobile for most of the payments and banking transactions.
ICICI bank’s internet banking has a superior interface and navigation where you can find all the information at one place. All the authentication factors are present on the same page, making fund transfer quick and easy.
Further, you can access all service requests from a single location. All of which provides a hassle-free user experience.
Even you can open a savings account online and can get account numbers instantly.
Best Savings Account Options by ICICI Bank
- ICICI Regular Savings Account
- ICICI Silver Savings Account
- ICICI Gold Privilege Savings Account
- ICICI Titanium Privilege Savings Account
| Monthly Average Balance | Rs. 10,000 to Rs. 1,25,000 (depending on variant) |
| Rate of Interest | Up to 50 Lac – 3.5% Above Rs. 50 Lac- 4% |
| Account Opening Process | Online and Branch visit |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | User-friendly and easy |
- Best mobile app
- Online banking is smooth & flawless
- Always 10 steps ahead in technology than any bank in India
- No extra benefits to a loyal customer
- Banking product benefits are average
#3. Kotak Mahindra Bank (Highest Savings Interest Account)
If you are looking for which bank gives highest interest rate on savings account in India, then you should go for Kotak Mahindra bank.
Kotak Mahindra bank offers one of the highest savings account interest rate in India. You would get up to 6% interest rate on your savings account. Even the FD interest rate of SBI, HDFC and ICICI ranges between 6 to 7%.
So you can earn approximately the same fixed deposit interest rate on your savings account without locking your money.
Kotak 811 Digital Bank is one of the best saving accounts provided by Kotak bank. 811 is a zero balance savings account that you can open online through your mobile or laptop.
Benefits of Kotak 811 Account
- Instant account opening
- Hight interest rate (up to 6%)
- Zero balance account
- The whole accounting process is paperless
Click Here to Open Kotak 811 Account Online
You can seamlessly open the savings account while sitting in your house without going to the bank branch.
The details for savings accounts are as under
| Monthly Average Balance | 0 |
| Rate of Interest | Up to 1 Lac – 4% Above 1 Lac- 6% to 5.5% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average |
- Higher rate of interest
- Online and paperless account opening
- Easy account opening process
- No good apps
Best For
Persons who are looking for a higher interest rate and zero account balance.
Open Kotak Zero Balance Online Account
#4. HDFC Bank Savings Account (For Best Products)
HDFC bank has one of the best products in the market – best credit cards, deposits rates, loans, Payzapp, Smarthub or Samsung pay.
Best or unique products from HDFC Bank
Diners club black is a super premium credit card from HDFC where you save up to 33% while shopping at 10X partner brands like Flipkart, Amazon, Yatra & Cleartrip via Smart Buy.
The card lets you earn 1 reward points per Rs. 30 spent and has a higher reward value of 1 rupee per reward point.
The customers get the best deals from e-commerce companies such as Snapdeal, Flipkart and Amazon.
HDFC on Chat is a natural language processing based artificial intelligence platform that lets you chat on Facebook messenger for making payments.
HDFC on Chat can be used even by non-customers to avail services like bill payments, mobile recharge, travel, movies and event bookings, etc.
For existing customers, HDFC banks provide an option of availing small instant personal loans at the ATM. The option shows on the ATM screen. All you need is to e-agreement on the screen and the money gets transferred to your account.
The facility is based on the customer’s financial details and fair assessment of their profile. ICICI and SBI are the other banks providing this facility.
HDFC Bank has another set of premier banking services and products where you have exclusive pricing, phone banking services and lifestyle benefits.
The premier banking includes customized solutions for needs related to
- Investments in equity & mutual funds,
- Tax payments,
- Insurance
- Portfolio management services.
All the premier banking needs are looked after by a dedicated relationship manager.
For availing premier banking you need to have a higher monthly average balance in your savings account. Which starts from Rs. 1 Lakh for classic premier banking to Rs. 10 Lacs for Imperia premium banking.
Best Saving Accounts from HDFC Bank
- HDFC Savings Max Account
- HDFC Regular Savings Account
- HDFC Basic Savings Banks Deposit Account
| Monthly Average Balance | Rs. 5,000 to Rs. 25,000 (depending on variant) |
| Rate of Interest | Up to 50 Lac – 3.5% Above 50 Lac- 4% |
| Account Opening Process | Online and Branch visit |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average |
- They offer good products (like credit cards) to loyal customers
- Premium bank products have great benefits
- Average service
- Average technology (poor mobile app)
- Staff is not knowledgeable or may misguide the customers
Best For
Anyone who is looking for a premium, best and customized products.
#5. Axis Bank Saving Account (For Good Services)
I don’t have any personal experience with Axis bank but I find that they have won many awards related to customer support.
- Best Contact centre at the customer experience awards 2018
- Best Loyalty Program in the financial sector for the second consecutive year from 2018
- Best rewards program for the fifth consecutive year from 2015
Axis is the only bank which gives rewards points on account-related transactions. You can earn reward points even for ECS, standing instructions, opening RD or demat account.
Best For
Persons who are looking for the best services and quality customer care.
Axis Bank also offers two different sets of savings bank account. Easy access and prime with lower account balance requirements and Prime plus, Priority and Burgundy with higher balance requirements.
Best Axis Bank Savings Account
| Savings Account | Minimum Average Balance |
| Axis Easy Access Savings Account | Monthly Rs. 10, 000 (metro/ urban) to Rs. 5,000 (semi-urban) |
| Axis Prime Savings Account | Monthly Rs. 25,000 (metro/ urban) to Rs. 10,000 (semi-urban) |
| Axis Prime Plus Savings Account | Monthly Rs. 1 Lac |
| Axis Priority Savings Account | Quarterly Rs. 2 Lacs |
| Axis Burgundy Savings Bank Account | Quarterly Rs. 10 Lacs |
The details for the savings bank account are
| Rate of Interest | 3.5% |
| Account Opening Process | Online, Physical Branch Visit |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average |
- Quality customer support
- Reward points for normal banking transactions
- Benefits only at higher relationship value
#6. Citi Bank Savings Account (Global Presence)
If you have global banking requirements for your family members or relatives, then look no other than Citibank.
You can find support from 4000 Citibank branches across 42 countries for all your banking requirements whenever you want.
Best For
A person who requires global banking services.
Citibank solves your fund remittances through solutions like
- Citi Global Transfers
- Wire Transfers
- Automated Clearing House
- Foreign Currency draft
Wherein you can send funds up to Rs. 3 Lacs per day or receive up to Rs. 30 Lacs per day from your Citibank account to that of family members Citibank account.
Best Citibank Savings Account
| Savings Account | Net Relationship Value Required over 3 months |
| Citi banking Savings Account | Rs. 15 Lacs |
| Citi Priority Savings Account | Rs. 15 Lacs |
| Citigold Savings Account | Rs. 75 Lacs |
| Citigold Private Savings Account | Rs. 5 Crores |
The details for the savings bank account are
| Rate of Interest | Up to 1 Lac – 3.5% Above 1 Lac- 3.5% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average to poor |
- Global presence
- Easy money receipts and transfers
Services available only in 23 cities in India
Check out – Best bank for home loan in India
Best Banks with Highest Interest Rate on Saving Account in India
#7. IDFC Bank Saving Account
IDFC Bank offers one of the highest interest rates of up to 7% interest on your savings account. The balance required is in excess of Rs. 2 Lacs.
Even with a lower balance, you can earn 6% which is 2.5% higher than the interest rate offered by other banks.
The biggest benefit is that there are no charges or penalties if you failed to maintain the minimum balance.
IDFC Bank only charges certain transactions like re-issue of cheque book, DD, replacing the debit card, annual debit card fees and ATM transaction beyond free limit when you do not maintain average monthly balance.
Best IDFC Bank Savings Account
- IDFC Bank Savings account with Signature Debit Card
- IDFC Bank Zero balance Savings account with Platinum Debit Card
- IDFC Bank Zero balance Savings accounts without deliverables
The other details for savings accounts are as under
| Monthly Average Balance | 0 to 25,000 rupees |
| Rate of Interest | Up to 1 Lac – 6% Above 1 Lac- 7% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average to poor |
- Highest rate of interest
- NIL charges on not maintaining the monthly average balance
- Services available only at few cities in India
Best For
Individuals who are looking to earn interest income even when not maintaining monthly average balance.
#8. RBL Bank Saving Account
If you are looking for more benefits in terms of locker operation(15% discount) or property loans (25% waiver on processing charges) then you can pick advantage savings bank account from RBL Bank.
While opening savings bank account the bank even lets you select the account number.
Best RBL Bank Savings Account
- RBL Bank Basic Savings Account
- RBL Bank Classic Savings Account
- RBL Bank Prime Edge Savings Account
- RBL Bank Advantage Savings Account
The details for savings accounts are as under
| Monthly Average Balance | Rs. 1000 to 25,000 rupees |
| Rate of Interest | Up to 1 Lac – 5.5% Above 1 Lac- 6% to 7% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average to better |
- Higher rate of interest
- Discounts on locker operations
- 25% waiver of processing charges when applying for property loans.
- Higher interest rates are applicable only on monthly balance greater than Rs. 1 Lac.
Best For
Persons who are looking to earn a higher interest income and other banking benefits.
#9. Yes Bank Saving Account
Yes bank gives you the opportunity to customize your savings account.
While opening the account you have the flexibility to choose the debit card, pricing options (alternative to maintaining minimum balance) account related benefit packages and even the complimentary introductory offers.
Best Yes Bank Savings Account
- Yes Bank’s Customizable Savings Account
- Yes Bank Smart Value Savings Account
The details for savings accounts are as under
| Monthly Average Balance | Rs. 1000 to 25,000 rupees |
| Rate of Interest | Up to 1 Lac – 5% Above 1 Lac- 6% to 6.25% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average |
- Higher rate of interest
- Pricing options (alternative to maintaining minimum balance)
- Flexibility to choose certain account related benefits
- Less variants of savings account
Best For
Individuals who are looking to earn a higher interest income and flexibility in picking other banking benefits.
#10. Lakshmi Vilas Bank
Pick Lakshmi Vilas bank for savings account only if you are located in the southern part of the country and the branch is nearby.
There are no great benefits except for the higher rate of interest.
Best Lakshmi Vilas Bank (LVB) Savings Account
- Lakshmi Savings Bank SB 301 Account
- Lakshmi Basic Savings Bank Deposit Account
- Lakshmi Savings Gold Saving Account
- Lakshmi Savings Star Gold Saving Account
- Lakshmi Titanium Savings Account
The details for savings accounts are as under
| Monthly Average Balance | 10,000 to 1,00,000 rupees |
| Rate of Interest | Up to 1 Lac – 4% Above 1 Lac- 5.25% to 6.5% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average to poor |
- Higher rate of interest
- No so good mobile or internet banking
- Does not provide accidental insurance
- Major branches in southern part
Best For
Individuals who are looking to earn a higher interest income.
#11. Bandhan Bank Saving Account
If you are looking to banking with a new bank which has roots for social cause then go for Bandhan bank.
The bank has a good range of savings account products but mostly at the regular end with normal benefits.
Best Bandhan Bank Savings Account
- Bandhan Premium Savings Account
- Bandhan Standard Savings Account
- Bandhan Advantage Savings Account
- Bandhan Sanchay Savings Account
- Bandhan BSBDA Savings Account
The details for savings accounts are as under
| Monthly Average Balance | Rs. 2,000 to Rs. 1 Lac |
| Rate of Interest | Up to 1 Lac – 4% Above 1 Lac- 6% to 7% |
| Account Opening Process | Online through website |
| Channel of Access | Mobile, Netbanking, Branch & ATMs |
| Ease of use | Average to poor |
- Higher rate of interest
- Higher interest rate is on incremental balance over Rs. 1 Lac
- Less branches
Best For
Individuals who are looking to earn a higher interest income.
#12. Digibank by DBS
You can open a savings bank account with Digi bank instantly with Aadhar. There is an online mechanism for customer support by no bank branches. The bank only has contact points.
The details for savings accounts are as under
| Monthly Average Balance | Rs. 2,000 to 1,00,000 rupees |
| Rate of Interest | Up to 1 Lac – 5.5% Above 1 Lac- 7% to 4% |
| Account Opening Process | Via digi app |
| Channel of Access | Mobile, Netbanking, |
| Ease of use | Average |
| Variants of Savings Accounts | NIL |
- Higher rate of interest
- Interest rate is on incremental amount
- No branches only have contact points
- Lesser interest rates for an amount over Rs. 5 Lacs
Best For
Individuals who are looking to earn a higher interest income.
Best Bank in India for Students (Savings Account for Students)
#13. State Bank of India Savings Account (For Widespread Reach & Services)
Anywhere you go in the country, you are sure to find an SBI branch and ATM. The best is that SBI as dedicated branches and extension counters at various schools, colleges and universities.
All of which saves students time and helps them in paying regular fees and exam fees with ease. Plus the students have access to banking services which carry lower charges.
Best State Bank of India Savings Account
- SBI Basic Savings Bank Account
- SBI Small Savings Account
- SBI Insta Savings Account
- SBI Digital Savings Account
The details for savings accounts are as under
| Monthly Average Balance | Metro/ Urban – Rs. 3,000 Semi Urban – Rs. 2000 Rural – Rs. 1000 |
| Rate of Interest | Up to 1 Lac – 3.25% Above 1 Lac – 3% |
| Account Opening Process | Online through website, YONO app, Branch |
| Channel of Access | Mobile, Netbanking, Branch and ATM |
| Ease of use | Average to good |
- Widespread reach and services
- Lowest average monthly balance
- No premium savings accounts or benefits
Best For
Students and for persons with a nearby branch.
Best Digital Bank in India (Payments Banks)
#14. Paytm Payment Bank Savings Account
With Paytm savings account, your phone is your bank. You can enjoy the convenience of banking from your phone.
Paytm payments bank is basically to cater for cashless payments transaction and minimal banking needs of unbanked sections of society.
You can open zero balance savings account with Paytm banks with no hassle to maintain monthly average balance.
Unlike traditional banks, you need not to fill forms for account opening. The account opening is simple and completely digital via the paytm app. But you need to submit documents to complete your KYC at the nearby location.
Paytm does not charge any money for all online fund transfers done via IMPS, UPI or NEFT to another Paytm bank account or Paytm wallet.
However, you need to pay 1% per transaction for domestic money transfers. Paytm also charges Rs. 3 for account verification done.
The drawback is that you can hold only up to Rs. 1 Lac combined in your savings bank account + wallet. Any excess balance is auto swept into fixed deposit at IndusInd bank at 8% interest rates.
The details for savings accounts are as under
| Monthly Average Balance | NIL |
| Rate of Interest | 3.5% |
| Account Opening Process | Paytm App |
| Channel of Access | Mobile |
| Ease of use | Average to good |
| Variants of Savings Accounts | NIL |
- Digital account opening via app
- Zero monthly average balance
- Real-time passbook updates
- 4% charges on money transfers from wallet to a bank account
- One or 2 branches
- Account balance limited to Rs. 1 Lac
Best For
Individuals using mobile for payments and basic banking with needs up to Rs. 1 Lac.
You may also like to read – Best bank for current account in India
#15. Airtel Payments Bank Savings Account
Airtel bank is best for making few banking transactions and making various payments like electricity and gas bills, mobile, telephone and water bills, DTH, data card and insurance.
The savings bank account can be opened via Airtel app, you even get an online debit card.
However, there is no physical branch but you can withdraw and deposit cash at 5 lac+ banking points. These banking points are the earlier recharge shops airtel outlets.
The details for savings accounts are as under
| Monthly Average Balance | NIL |
| Rate of Interest | 4% |
| Account Opening Process | Airtel App |
| Channel of Access | Mobile |
| Ease of use | Average to good |
| Variants of Savings Accounts | NIL |
- Digital account opening via app
- Zero monthly average balance
- 5 Lacs+ banking points
- Only contact points and no branches
- Account balance limited to Rs. 1 Lac
Best For
Individuals using mobile for payments and basic banking with needs up to Rs. 1 Lac.
Best PSU (Government) Bank in India
#16. Bank of Baroda Saving Account
Bank of Baroda is the second largest PSU banks with good products and quality customer service.
The bank offers a decent net banking service but the apps are average.
The best thing is that all the savings account variants require the lowest quarterly average balance when compared to other banks.
Best Bank of Baroda Savings Account
- Baroda Super Savings Account
- Baroda Basic Savings Bank Account
- Baroda Advantage Savings Account
- Baroda Centenary Savings Account
- Baroda Shubh Savings Account
The details for savings accounts are as under
| Quarterly Average Balance | Metro/ Urban – Rs. 1,000 to 20,000 Semi-Urban – Rs. 15,000 Rural – NIL to Rs. 15,000 |
| Rate of Interest | Up to 50 Lac – 3.25% Above 50 Lac- 3.75% |
| Account Opening Process | Branch |
| Channel of Access | Mobile, Netbanking, Branch and ATM |
| Ease of use | Average to good |
- Best customer services
- Lowest quarterly average balance
- No premium savings accounts or benefits
- No good apps
Best For
Individuals looking for best of services and the lowest minimum balance.
List of Banks with Zero Balance Account
Almost all the banks in India offers a zero balance savings account. The problem is few of them list up front others do not.
You would not find bank employees easily telling you about the zero balance savings account. The reason is that they do not get any incentive for opening a zero balance savings account.
Please note that the zero balance accounts are basic savings bank deposit accounts. The main purpose of which is to connect the unbanked section of society and provide minimum banking services.
Hence, you will find cap on the amount, number of transactions and restrictive services on zero balance accounts.
Below is the list of banks offering zero balance savings account
- Kotak Mahindra Bank
- Digibank by DBS
- State Bank of India
- Federal Bank
- Bank of Baroda
- ICICI Bank
- Axis Bank
- Standard Chartered Bank
- IDFC Bank
- IndusInd Bank
- HDFC Bank
- RBL Bank
- Paytm Payments Bank
- Airtel Payment Bank
Saving Bank Interest Rates Comparison
| Bank | Below Rs. 1 Lac | Above Rs. 1 Lac |
| ICICI Bank | 3.5% | 3.5% |
| HDFC Bank | 3.5% | 3.5% |
| Axis Bank | 3.5% | 3.5% |
| Citi Bank | 3.5% | 3.5% |
| IndusInd Bank | 4% | 5% – 6% |
| IDFC Bank | 6% | 7% |
| Kotak Mahindra Bank | 5% | 6% |
| RBL Bank | 5.5% | 6% – 6.5% |
| Yes Bank | 5% | 6% |
| Lakshmi Vilas Bank | 4% | 5.25% – 6.25% |
| Bandhan Bank | 4% | 6% |
| Digibank by DBS | 6% | 7% – 4% |
| State Bank of India | 3.5% | 3.5% – 4% |
| Paytm Payment Bank | 4% | N.A. |
| Airtel Payments Bank | 4% | N.A. |
| Bank of Baroda | 3.5% | 3.5% |
Very good and useful
Thanks..
Good post, thanks!
Great post Pardeep. However, I would like to know how safe is each bank in keeping a savings account or an FD with them? As you know what happened with PMC bank, I guess that should be a factor as well.
Thanks bhavuk for your suggestions…
I am looking for a savings account for getting max interest. I cannot opt for FD for higher interest is due to the loss from TDS. IDFC is looking great for my requirement. How good/safe is this bank? Can I expect hassle-free service?
you miss canara bank…Savings Account.
Thanks for pointing out marella.. Can you suggest the benefits of canara bank’s savings account that can make him part of list?
haha you nailed it
details about IOB – Indian Overseas Bank and Federal Bank are missing
Thanks Sarath.. I will add both in my research list & update once I go through the details.
Nice information about all bank details, good job.
Thank you Ramakrishna.. Glad that you liked it.
Very helpful and more information in this blog.
Thank you
Thank you Pradeep. Glad that you liked my article.
Sirji,
SBI interest rate upto 1lac is 3.25%, and above 1lac is 3%.
Thanks for pointing out Digvijay. Updated the content.
Thanks for taking the time. This was helpful.
Axis bank never picked up calls and branch was not keen when you approach them for a savings account, so much for customer service am staying away from those guys.
Thanks for acknowledging !!!!
Sir i am confuse between axis vs icici which one is best for saving account…
Hey Nishu, What are your points of confusion?
Very niece blog compared and listed clearly.
Kindy bring a same kind of blog on FD in different bank and amount and their interest rate.
Thanks Manisha.. Glad that you liked it. I will try to cover FD comparison in the near future.
very nyc blog. Thank you for sharing this informative article
Thanks Pradeep.. Glad that you liked it..
it is very informative and useful for maintaining bank accounts in india
Thanks zaffar..
Glad that you liked it.
Please compare cost of maintaining account also such as annual debit card charges, penalty for not maintaining aqb etc.
PSU Banks don’t have concept of aqb. Your aqb may 10x but if you didn’t have required minimum balance even for a day, you will be penalized
Thanks for feedback. I will check and update.
Sir ive an paypal account and its doesn’t support Indian debit card like rub pay debit card.
so i want to open account in Hdfc bank so suggest me which visa debit card i should go,and how it will be annually cost and maintenance cost of my hdfc savings bank .
thanks advance.
Bimal, hdfc bank will provide platinum (Visa/Master) debit card..