Savings Interest Rates

Saving Fund Deposit Accounts- Interest Rate of Deposits The interest rates on Savings Fund deposits with effect from 11.12.2025

Savings Fund Amount	Rate of Interest
Savings Fund Account Balance upto Rs. 25 lakhs	2.50% p.a.
*Savings Fund Account Balance from more than Rs. 25 lakhs to Rs.2 crore	3.00% p.a.
*Savings Fund Account Balance of above Rs. 2 crore upto 10 crores	4.00% p.a.
*Savings Fund Account Balance of above Rs. 10 crores	6.00% p.a.

2.50% for daily balances up to Rs 25 lakhs
3.00% for daily balances above 25 lakhs and up to Rs.2 Crores, please note 3.00% interest will be applicable on an amount above Rs 25 lakhs and up to Rs 2 Crores.
4.00% for balances above Rs.2 Crores and upto 10 crores, please note 4.00% will be applicable on an amount above Rs.2 Crore and upto 10 crores.
6.00% for balances above Rs.10 crores.Please note 6.00% will be applicable for balances above Rs.10 crores

Summary of how interest on savings accounts is calculated as per the Reserve Bank of India (RBI).

Daily Balance Method (mandatory): Interest is calculated on the daily closing balance for each day.
Formula: Daily interest = Closing balance × (Annual rate ÷ 365). Total interest is the sum of daily interests for the period.
Days per year: Use 365 (even in leap years) for the divisor.
Credit frequency: Banks must credit interest at least quarterly (some credit monthly or half-yearly).
Rate setting: Banks set their own savings interest rates (may use tiered/slab rates).
Rounding: Banks typically compute daily interest to sufficient precision, sum it, then round the final credited amount to paise.