Savings Account Interest Calculator
Free Savings Account Interest Calculator for India. Calculate monthly/quarterly interest on your savings account. Compare rates from SBI, HDFC, ICICI, and small finance banks. Check tax benefits under 80TTA.
About This Calculator
Savings account interest is calculated on your daily closing balance and credited quarterly or semi-annually. With interest rates ranging from 3% to 7%, choosing the right bank can make a significant difference in your returns, especially for larger balances.
Our Savings Interest Calculator helps you calculate the exact interest you'll earn based on your balance, interest rate, and time period. Compare rates from all major banks to find the best savings account for your needs.
Frequently Asked Questions
How is savings account interest calculated?
Savings account interest is calculated on the daily closing balance and credited quarterly or semi-annually as per RBI guidelines. The formula is:
Interest = (Daily Balance × Rate × Days) / (365 × 100)
RBI mandates the daily balance method since 2010, which is more beneficial than the earlier minimum balance method.
What is the current savings account interest rate in India?
Savings Account Interest Rates in India (2026):
| Bank | Interest Rate | Balance Threshold |
|---|---|---|
| SBI | 2.70% - 3.00% | Up to ₹1 Cr |
| HDFC Bank | 3.00% - 3.50% | Up to ₹50L |
| ICICI Bank | 3.00% - 3.50% | Up to ₹50L |
| Axis Bank | 3.00% - 3.50% | Up to ₹50L |
| Kotak Mahindra | 3.50% - 4.00% | Up to ₹50L |
| IDFC First Bank | 3.50% - 6.00% | Up to ₹10L |
| AU Small Finance | 3.50% - 7.00% | Up to ₹2L |
| Ujjivan Small Finance | 3.50% - 6.50% | Up to ₹25L |
Which bank gives highest interest on savings account?
Small finance banks offer the highest savings account interest rates:
- AU Small Finance Bank: Up to 7% (₹2 lakh to ₹5 lakh balance)
- Ujjivan Small Finance Bank: Up to 6.50%
- Equitas Small Finance Bank: Up to 6.50%
- IDFC First Bank: Up to 6%
Among major banks, Kotak Mahindra offers up to 4% and Yes Bank up to 5% on select savings account variants.
How much interest will I get on ₹1 lakh in savings account?
| Bank Type | Rate | Annual Interest | Quarterly |
|---|---|---|---|
| Major Bank (SBI, HDFC) | 3.00% | ₹3,000 | ~₹750 |
| Private Bank (Kotak) | 3.50% | ₹3,500 | ~₹875 |
| IDFC First Bank | 6.00% | ₹6,000 | ~₹1,500 |
| Small Finance Bank | 7.00% | ₹7,000 | ~₹1,750 |
Is savings account interest taxable?
Yes, savings account interest is taxable as "Income from Other Sources" under the Income Tax Act:
- Section 80TTA: Deduction up to ₹10,000 for individuals below 60 years
- Section 80TTB: Deduction up to ₹50,000 for senior citizens (60+ years)
- TDS: 10% deducted if interest exceeds ₹10,000 in a financial year
- Form 15G/15H: Submit to avoid TDS if your total income is below taxable limit
Interest Calculation Example:
For a balance of ₹2,50,000 at 3.5% interest for one month (30 days):
Daily Interest = (₹2,50,000 × 3.5 × 1) / (365 × 100) = ₹23.97 per day
Monthly Interest = ₹23.97 × 30 = ₹719.18
Key Features of Savings Account Interest:
- Calculation Method: Daily closing balance (RBI mandated)
- Crediting Frequency: Quarterly or semi-annually
- Interest Rate Range: 3.00% - 7.00%
- Minimum Balance: Zero balance to ₹10,000 depending on account type
- Tax Benefits: Deduction up to ₹10,000 (₹50,000 for seniors)
- Liquidity: Full liquidity - withdraw anytime without penalty
Tips to Maximize Savings Interest:
- Choose Small Finance Banks: Higher rates up to 7% vs 3% in major banks
- Maintain Higher Balance: Some banks offer tiered rates (higher for larger balances)
- Consider Sweep FD: Auto-convert excess balance above threshold to FD
- Compare Regularly: Banks change rates - review annually
- Use Multiple Accounts: Distribute to maximize insurance (₹5L per bank under DICGC)
Calculator Features:
- Calculate exact interest for any balance amount
- Monthly, quarterly, and annual interest breakdown
- Compare rates from all major Indian banks
- Tax calculation under Section 80TTA/80TTB
- Visual comparison charts
- Daily balance interest calculation method