In this article, I will share the best savings accounts you can open in India in 2026. Saving is a big part of Indian household’s finential planning. Every family in India has some sort of financial savings in a bank or holdings. However, many banks offer higher interest rates and benefits then others.

While some are good for small term saving account, others are good for long-term savings. In this article, I will share only the best savings accounts you can open in order to maximize your profits in 2026.

Quick Summary: Top Savings Accounts in India 2026

Before we go into details, here is a quick list of best savings accounts I found in India for 2026. These are ranked based on their interest rates and overall benefits they provide.

• DBS Bank Savings Account: Best for High Interest Rates – Up to 7.5% p.a.
• IDFC FIRST Bank Pratham Savings Account: Best for Zero Balance Account – 7% p.a.
• IndusInd Bank Indus Delite Savings Account: Best for Premium Features – 7% p.a.
• Kotak Mahindra 811 Digital Account: Best for Digital Banking – 6% p.a.
• AU Small Finance Bank Savings Account: Best for Small Finance Banking – 7.25% p.a.
• HDFC Bank Savings Account: Best for Branch Network – 3.5% p.a.
• ICICI Bank Savings Account: Best for Overall Banking Experience – 3.5% p.a.
• Axis Bank Savings Account: Best for Digital Services – 3.5% p.a.

1. DBS Bank Savings Account – Best for High Interest Rates

Interest Rate: Up to 7.5% p.a. (on balances up to ₹1 lakh)

DBS Bank is currently offering one of the highest interest rates in India. They give you upto 7.5% interest per year if you have balance upto 1 lakh rupees. This is really good compared to traditional banks. DBS is mainly a digital bank, so you will need to be comfortable with online banking to use their services.

Key Features

• Interest rate up to 7.5% p.a. on balances up to ₹1 lakh
• Zero balance facility available with salary account
• Free NEFT, RTGS, and IMPS transactions
• Comprehensive mobile and internet banking services
• Contactless debit card with global acceptance

Pros and Cons

Best For: If you are comfortable with online banking and have balance around 1 lakh rupees, DBS is perfect for you. You will get maximum returns on your savings.

2. IDFC FIRST Bank Pratham Savings Account – Best for Zero Balance Account

Interest Rate: 7% p.a. (on balances up to ₹1 lakh)

IDFC FIRST Bank is best if you cannot maintain minimum balance in your account. Many people struggle with maintaining minimum balance requirements and end up paying penalties. IDFC FIRST Bank solves this problem by offering zero balance account. Plus they also give 7% interest rate which is really good.

Key Features

• Zero minimum balance requirement
• 7% p.a. interest rate on balances up to ₹1 lakh
• Free unlimited ATM transactions at any bank’s ATM in India
• Free NEFT, RTGS, and IMPS transactions
• Complimentary personal accidental insurance cover
• Monthly interest credits (instead of quarterly)

Pros and Cons

Best For: Students, people who are opening account first time, or anyone who don’t want to worry about minimum balance. This is perfect zero balance account with high interest rate.

3. IndusInd Bank Indus Delite Savings Account – Best for Premium Features

Interest Rate: Up to 7% p.a.

IndusInd Bank is good if you want premium banking services along with high interest rates. They give you 7% interest and also provide additional benefits like airport lounge access, insurance coverage and other lifestyle benefits. However you need to maintain some minimum balance for this account.

Key Features

• Interest rate up to 7% p.a. on savings balance
• Instant banking with IndusInd Bank’s Mobile Banking App
• Complimentary airport lounge access (domestic and international)
• Free personal accidental death insurance up to ₹15 lakhs
• Zero charges on NEFT, RTGS, and IMPS transactions
• Exclusive dining and lifestyle privileges

Pros and Cons

Best For: People who have good money and want premium services. If you can maintain minimum balance and want lifestyle benefits like airport lounge, this is good option for you.

4. Kotak Mahindra 811 Digital Account – Best for Digital Banking

Interest Rate: Up to 6% p.a.

Kotak 811 is one of the most popular digital savings account in India. You can open this account completely online without any paperwork in just few minutes. They give 6% interest rate and its a zero balance account. The best part is you can open it sitting at home using just your phone.

Key Features

• 100% digital account opening in minutes (zero paperwork)
• Interest rate up to 6% p.a. on savings
• Zero balance account with free virtual debit card
• Free unlimited domestic fund transfers
• Instant digital fixed deposit creation
• Comprehensive mobile banking with advanced features

Pros and Cons

Best For: Young people who want to open account quickly online. If you don’t want to go to bank branch and want everything on mobile, Kotak 811 is best choice.

5. AU Small Finance Bank Savings Account – Best for Small Finance Banking

Interest Rate: Up to 7.25% p.a.

AU Small Finance Bank gives one of the highest interest rates you can get in India right now. They give 7.25% interest which is really high. AU Bank is a small finance bank so they can offer better rates then big banks. The minimum balance requirement is also reasonable compared to other banks.

Key Features

• Interest rate up to 7.25% p.a. on savings balance
• Flexible minimum balance requirements starting from ₹2,500
• Free debit card with comprehensive benefits
• Unlimited free digital transactions
• Personalized banking services
• Quick loan approval for existing customers

Pros and Cons

Best For: People who want highest interest rates and are okay with banking with a small finance bank. Good if you want personalized service and high returns on your savings.

6. HDFC Bank Savings Account – Best for Branch Network

Interest Rate: 3% to 3.5% p.a.

HDFC Bank is India’s biggest private bank. They have branches everywhere in India. The interest rate is lower compared to digital banks but many people still prefer HDFC because of their huge network and reliability. If you need to visit bank branch often or want ATM access everywhere, HDFC is good choice.

Key Features

• Extensive network of over 6,000 branches and 18,000 ATMs
• Multiple account variants for different customer segments
• Comprehensive digital banking services
• Wide range of banking products and services
• Excellent customer support and service quality
• Integration with investment, insurance, and loan products

Pros and Cons

Best For: People who want bank branches near them and don’t mind lower interest rates. Good if you prefer traditional banking and want access to all banking services in one place.

7. ICICI Bank Savings Account – Best for Overall Banking Experience

Interest Rate: 3% to 3.5% p.a.

ICICI Bank is another big private bank in India. They have very good mobile banking app and online services. The interest rate is similar to HDFC but ICICI is known for their digital banking features. They also have good branch network across India.

Key Features

• Over 5,500 branches and 16,000 ATMs nationwide
• Multiple savings account variants for different needs
• Industry-leading mobile banking app (iMobile Pay)
• Integrated wealth management and investment platforms
• 24/7 customer service and support
• Seamless integration with payment wallets and UPI

Pros and Cons

Best For: People who want good mix of digital banking and traditional banking. If you like using mobile apps but also want option to visit branch when needed, ICICI is good.

8. Axis Bank Savings Account – Best for Digital Services

Interest Rate: 3% to 3.5% p.a.

Axis Bank is focusing a lot on digital services these days. They have good online banking and mobile app. The interest rates are same as HDFC and ICICI but Axis is known for quick account opening and good customer service. They also have decent branch network in most cities.

Key Features

• Over 4,700 branches and 13,000 ATMs across India
• Advanced mobile and internet banking platforms
• Multiple account variants including salary, women’s, and senior citizen accounts
• Instant account opening with video KYC
• Complimentary debit card with various benefits
• Integration with popular digital payment platforms

Pros and Cons

Best For: People who want modern digital banking with option of traditional banking too. Good if you want quick account opening and responsive customer service.

What is Savings Account?

Savings account is basically a bank account where you keep your money safe and earn some interest on it. Every bank in India offers savings account. The main benefit of savings account is that you can take out your money anytime you want, unlike fixed deposits where money is locked for certain period.

Indian families use savings accounts for emergency funds, monthly expenses, and short term savings. The money is safe in bank and also earns some interest. Most banks give you debit card, internet banking and mobile banking with savings account.

Different Types of Savings Accounts in India

There are many types of savings accounts available in India. Each type is designed for different kind of people. Here are the main types you should know about:

• Regular Savings Account: This is most common type. You need to maintain minimum balance and you get standard interest rate. Good for regular people.
• Zero Balance Savings Account: Best for people who cannot maintain minimum balance. No penalties even if balance is zero. Some features might be limited but its good for students and first time users.
• Salary Savings Account: Given to salaried people. Usually has zero balance requirement as long as salary comes in account. Has better benefits and higher transaction limits.
• Senior Citizen Savings Account: Special account for people above 60 years. They get higher interest rate (usually 0.5% more than regular account) and other benefits like free cheque books.
• Women’s Savings Account: Some banks give special accounts for women with lower minimum balance and shopping discounts.
• Kids/Minor Savings Account: Account for children below 18 years. Parents manage the account. Good way to teach kids about saving money.
• Digital Savings Account: Completely online accounts. You can open them from home using mobile. Usually give higher interest rates and zero balance. Examples are Kotak 811, DBS Digibank etc.

How to Choose Best Savings Account

Choosing right savings account is important. You cannot just look at interest rate only. There are many other things you need to check before opening account. Let me tell you what factors you should consider.

1. Interest Rate

Interest rate is obviously important but you need to understand how its calculated. Most banks calculate interest daily and credit it every 3 months (quarterly). But some banks like IDFC FIRST credit interest every month which is better for you because of compounding.

Try to get account with 6% or more interest rate to beat inflation. Right now inflation is around 5-6% in India so if your interest rate is lower then inflation, you are actually losing money value.

2. Minimum Balance

Many banks require you to keep minimum balance in account. Traditional banks like HDFC, ICICI need you to maintain ₹5,000 to ₹25,000 depending on your city and account type. If you don’t maintain this balance, they charge penalty of ₹200-₹750 every 3 months.

If you cannot maintain minimum balance, go for zero balance accounts like IDFC FIRST Bank or Kotak 811. These accounts don’t charge any penalty even if balance is zero.

3. Branch and ATM Network

Think about how you use bank. If you need to visit branch often or withdraw cash regularly, choose bank with good branch and ATM network. HDFC, ICICI, Axis have branches everywhere in India.

But if you mainly use mobile banking and don’t need branch visits, then digital banks like DBS or Kotak 811 are perfect. They give higher interest rates because they don’t have branch expenses.

4. Mobile App and Online Banking

In 2026, good mobile app is must. Check if bank has easy to use mobile app with UPI, instant money transfer, bill payments etc. You should be able to do everything from your phone without visiting branch.

Also check if they have video KYC so you can open account from home. 24/7 customer support through app is also helpful.

5. Hidden Charges and Fees

Apart from minimum balance penalty, there are other charges too. Banks charge for ATM withdrawals from other bank ATMs, fund transfers, demand drafts, cheque books, SMS alerts, debit card yearly fees etc.

Some premium accounts don’t charge these fees but they need higher minimum balance. So calculate total cost before choosing account.

6. Extra Benefits

Premium accounts give you extra benefits like free insurance, airport lounge access, shopping discounts, priority customer service etc. These benefits are good but make sure they are worth the higher minimum balance requirement.

If you don’t use airport lounge or don’t shop much, then these benefits are useless for you. Better to take simple account with high interest rate.

Interest Rates in 2026 – What You Can Expect

Interest rates on savings accounts vary a lot in India. It depends on which type of bank you choose. Reserve Bank of India (RBI) controls the overall interest rates in country through repo rate. When RBI changes repo rate, banks also change their interest rates.

Right now in 2026, digital banks and small finance banks are giving much higher rates compared to traditional big banks. This is because digital banks don’t have branch expenses so they can give you better rates.

Current Interest Rates by Bank Type

Here is simple breakdown of interest rates you can expect from different types of banks in 2026:

• Small Finance Banks: 6.5% to 8% per year (like AU Bank, Utkarsh, Equitas)
• Digital Banks: 6% to 7.5% per year (like DBS, IDFC FIRST, Kotak 811)
• Private Banks: 3% to 4% per year (like HDFC, ICICI, Axis)
• Government Banks: 2.7% to 3.5% per year (like SBI, PNB, BOB)

Important thing to note is that high interest rates usually have conditions. Many banks give high rate only upto certain balance limit (like upto ₹1 lakh or ₹5 lakhs). Above that limit, rate becomes lower. So always read carefully what rate applies to your balance.

Will Interest Rates Change in 2026?

Interest rates are linked to RBI’s policies. If RBI reduces repo rate to help economy grow, then banks will also reduce savings account rates. Right now inflation is under control and economy is growing, so experts think rates will remain mostly stable in 2026. There might be small changes but nothing major is expected.

Is Your Money Safe in Savings Account?

This is very important question. Yes, your money is safe in savings account in India. Government of India protects your deposits through an organization called DICGC (Deposit Insurance and Credit Guarantee Corporation). DICGC is part of Reserve Bank of India.

How Much Money is Protected?

DICGC protects upto ₹5 lakh per person per bank. This means if bank fails, you will get back upto ₹5 lakh. This ₹5 lakh limit includes all your accounts in that bank – savings account, current account, fixed deposits, everything combined.

Important points to remember:

• ₹5 lakh limit is per bank, not per account
• If you have accounts in different banks, each bank’s deposit is protected separately upto ₹5 lakh
• All scheduled banks, small finance banks, payment banks are covered under this insurance
• Different branches of same bank are counted as one bank only

Choose DICGC Insured Banks Only

All banks I mentioned in this article are DICGC insured so your money is safe with them. But always verify before opening account in any new bank. You can check RBI website for list of insured banks or ask bank directly.

If you have more then ₹5 lakh to deposit, spread it across multiple banks. For example if you have ₹15 lakh, put ₹5 lakh each in three different banks. This way all your money is fully protected.

Tax on Savings Account Interest

Interest you earn on savings account is taxable in India. But government gives some exemptions. You need to understand this properly to plan your taxes correctly.

₹10,000 Tax Free for Regular People

Under Section 80TTA of Income Tax Act, regular people (not senior citizens) can earn upto ₹10,000 interest per year without paying any tax. This ₹10,000 limit is for total interest from all your savings accounts combined.

So if your total savings interest is ₹10,000 or less in a year, its completely tax free. If you earn more then ₹10,000, only the extra amount will be taxed as per your income tax slab.

₹50,000 Tax Free for Senior Citizens

Senior citizens (people above 60 years age) get much better benefit. Under Section 80TTB, they can earn upto ₹50,000 interest without any tax. This ₹50,000 includes interest from savings account, fixed deposits, recurring deposits – everything combined.

This is very good for senior citizens because most of them won’t need to pay any tax on their savings interest.

TDS (Tax Deducted at Source)

If your savings account interest goes above ₹40,000 in a year (₹50,000 for senior citizens), bank will deduct TDS. TDS rate is 10% if you gave your PAN card details, or 20% if you didn’t provide PAN.

If your total income is below taxable limit, you can submit Form 15G (regular people) or Form 15H (senior citizens) to bank. Then bank won’t deduct TDS from your interest.

Some tips for tax planning:

• Keep track of interest earned from all savings accounts to use ₹10,000 tax benefit properly
• If you are close to ₹40,000 limit, consider opening account in family member’s name
• Senior citizens should plan deposits to use full ₹50,000 tax benefit
• Submit Form 15G/15H before financial year starts if your income is below taxable limit
• Keep interest certificates from bank for filing income tax return

Frequently Asked Questions (FAQs)

Which bank offers the highest interest rate on savings accounts in India?

Right now in 2026, AU Small Finance Bank gives 7.25% interest and DBS Bank gives upto 7.5% interest (on balance upto 1 lakh). These are the highest rates you can get. But remember that rates can be different based on how much balance you have in account.

Can I open a savings account with zero balance?

Yes, many banks give zero balance accounts. IDFC FIRST Bank, Kotak 811, and Jan Dhan accounts don’t need minimum balance. You can keep any amount in these accounts and there is no penalty.

How is interest calculated on savings accounts in India?

Banks calculate interest daily on your closing balance. The formula is: (Daily Balance × Interest Rate × Number of Days) ÷ 365. Most banks give you interest every 3 months but some banks like IDFC FIRST give monthly which is better for compounding.

Is the interest earned on savings accounts taxable?

Yes, interest is taxable but you get exemption upto ₹10,000 per year under Section 80TTA. Senior citizens get ₹50,000 exemption under Section 80TTB. Any interest above this limit is taxed as per your income tax slab.

How many savings accounts can I have in India?

There is no limit on how many savings accounts you can open. You can have accounts in multiple banks. But having too many accounts makes it difficult to manage and maintain minimum balance. I suggest keeping 2-3 accounts maximum for different purposes.

What documents are required to open a savings account?

You need these documents: (1) PAN Card – mandatory if you deposit more than ₹50,000 per year, (2) Aadhaar Card for identity and address proof, (3) Passport size photos, (4) Initial deposit money. For digital accounts, many banks do Video KYC so you don’t need to submit physical documents.

Are digital savings accounts safe?

Yes, digital accounts are completely safe. They are covered by DICGC insurance upto ₹5 lakh just like traditional accounts. Digital banks follow same RBI rules and use good encryption and two-factor authentication to protect your money.

What is the difference between savings account and current account?

Savings account is for individuals to save money and earn interest. You can do limited transactions (around 50 per month). Current account is for businesses who need unlimited transactions. Current account usually doesn’t give any interest but you can do as many transactions as you want.

Can NRIs open savings accounts in India?

NRIs cannot open regular savings account. They need to open special NRO (Non-Resident Ordinary) or NRE (Non-Resident External) accounts. These accounts are made specially for NRIs and have different rules for tax and money transfer.

What happens if I don’t maintain the minimum balance?

If you don’t maintain minimum balance, bank will charge penalty. The penalty is usually ₹200 to ₹750 every 3 months depending on bank and how much short you are. To avoid this, either maintain minimum balance or switch to zero balance account.

Final Words

Choosing best savings account depends on what you need. If you want maximum interest, go for digital banks like DBS Bank or IDFC FIRST Bank – they give upto 7.5% interest. If you want branches everywhere and don’t mind lower interest, choose HDFC, ICICI or Axis Bank.

Think about how you use bank. If you mainly use mobile banking and rarely visit branch, digital banks are perfect. They give higher interest because they don’t have branch costs. But if you like visiting branch and need cash withdrawals often, traditional banks with big ATM network are better choice.

There is no single “best” account for everyone. It depends on your needs. Some people need zero balance account, some want high interest rate, some want premium features. Look at all the factors I explained in this article and choose account that fits your requirements.

Don’t just look at interest rate only. Check minimum balance requirement, charges, mobile app quality, branch network and other features too. All these things matter.

I hope this article helped you understand different savings accounts available in India in 2026. Choose wisely and start saving money today!