Banking & Savings · 5 min read
Highest savings account interest rates in India
SBI, HDFC, ICICI pay 2.7-3% on your savings. AU Small Finance Bank pays 7.25%, Ujjivan 7.5%, with the same DICGC insurance. Here's the honest comparison.
Krish Dalal
Founder and editor, PaisaExpert. Master's in Business Management, SP Jain School of Global Management, London. · Last updated 2026-05-01
Most Indians leave six-figure balances in SBI, HDFC or ICICI savings accounts earning 2.7-3% — when DICGC-insured small-finance banks like AU, Equitas and Ujjivan offer 7-7.5% on the same first ₹5 lakh of deposits, with identical RBI deposit insurance behind it.
Current best rates (verify on bank site before opening)
| Bank | Rate on ₹1L+ savings | Min balance | Honest catch |
|---|---|---|---|
| AU Small Finance Bank | Up to 7.25% | Nil | Mature app, good UPI support — the safe SFB pick |
| Equitas Small Finance Bank | Up to 7.00% | Nil | Sweep-FD feature is excellent |
| Ujjivan Small Finance Bank | Up to 7.50% | Nil | Newer app, onboarding can be slow |
| SBI | 2.70% | ₹3,000 (urban) | Default for most Indians — should not be |
| HDFC / ICICI | 3.00% | ₹10,000 | Better UX, worse interest. Worth it only for premium banking services. |
A simple three-layer system
| Layer | Where to keep it | Why |
|---|---|---|
| Float (1 month of expenses) | Your existing salary account (SBI/HDFC/ICICI/Axis) | Convenience, UPI, auto-debits |
| Buffer (2-3 months of expenses) | AU/Equitas/Ujjivan savings account | Liquid, 7%+ rate, fully DICGC-insured up to ₹5 lakh |
| Emergency fund (3-6 months of expenses) | Sweep-FD inside that same SFB account | Locked but instantly breakable, slightly higher rate |
What to do next
- Open an account at AU or Equitas via their app (Aadhaar OTP, done in 10 minutes).
- Transfer your buffer + emergency-fund money over. Leave only one month's float in the SBI/HDFC salary account.
- Set up sweep-to-FD if available — any balance above ₹50,000 auto-sweeps into a 7-day FD.