Which Savings Account Gives the Highest Interest Rates for Balances Below 50 Lakh?

A savings account lets you store money securely while earning interest on your balance. Banks calculate interest daily based on your closing balance and credit it either monthly or quarterly, depending on their policy.

For balances below ₹50 lakh, interest rates differ across banks, and the frequency of crediting affects how quickly your money grows. The Reserve Bank of India ensures daily interest calculations for transparency and consistency. Choosing a bank with a high interest rate and frequent crediting can significantly boost your savings over time.

IDFC FIRST Bank: High Rates

IDFC FIRST Bank offers some of the best savings account interest rates in India. Based on the latest rates effective June 17, 2025, the Bank provides 3% per annum for balances up to ₹5 lakh. For balances between ₹5 lakh and ₹10 crore, the rate jumps to 7%, ₹10 crore - ₹25 crore it is 6.5% and for balances between ₹25 crore and ₹50 crore, it’s 6%.

The applicable rates are 3% for up to ₹5 lakh and 7% for amounts between ₹5 lakh and ₹50 lakh. IDFC FIRST Bank also credits interest monthly, which allows your savings to compound faster than with quarterly credits. With zero charges on all services like NEFT, RTGS, and ATM withdrawals, plus a seamless digital banking platform, it’s a strong option for modern savers.

Why Choose IDFC FIRST Bank?

Here are key reasons why you should choose IDFC First Bank to open savings account online:

• Attractive Rates: Up to 7% for balances between ₹5 lakh and ₹10 crore.
• Monthly Credits: Interest compounds faster with monthly payouts.
• No Hidden Fees: Zero charges on all savings account services.
• Digital Ease: A user-friendly app with features like expense tracking.

Comparing IDFC FIRST Bank with Other Major Banks

The table below compares savings account interest rates for balances below ₹50 lakh across IDFC FIRST Bank, Kotak Mahindra Bank, SBI, HDFC Bank, Axis Bank, and ICICI Bank, using the data provided, effective as of April and May 2025.

Bank	Interest Rate (Below ₹50 Lakh)
IDFC FIRST Bank	3% (up to ₹5 lakh), 7% (₹5 lakh - ₹50 lakh)
Kotak Mahindra Bank	2.75%
State Bank of India	2.50%
HDFC Bank	2.50%
Axis Bank	2.50%
ICICI Bank	2.50%

Conclusion

IDFC FIRST Bank clearly stands out with its 7% interest rate for amounts between ₹5 lakh and ₹10 crore monthly interest credits, and no charges on all services. In comparison, Kotak Mahindra Bank, SBI, HDFC Bank, Axis Bank, and ICICI Bank offer a lower rate of 2.50 - 2.75%, making them less appealing for those aiming to maximise returns.

IDFC FIRST Bank’s combination of high interest rates, monthly interest payouts, and digital convenience makes it an excellent choice for savers. Be sure to check the latest rates on official bank websites, as they can change due to RBI policies or market conditions.

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