THESE 5 private banks offering highest savings account interest rates in 2025

The Reserve Bank of India (RBI) has cut the repo rate by a total of 100 basis points (1%) in three monetary policy review meetings since February 2025. The impact of this decision has been visible on the deposit rates of banks across the country. Many public and private banks have reduced the interest on their fixed deposits (FDs) and savings accounts. In such a situation, it is now becoming difficult for customers to get good returns on their deposits.

However, some private sector banks are still offering better interest rates to their savings account holders. Especially if you have a large amount in your savings account, then keeping money in these banks can be beneficial.

Also read: Major changes in HDFC Bank credit card: New charges and limits effective from July 1

Top 5 banks with highest interest on savings accounts in June 2025

1. Bandhan Bank

Bandhan Bank is one of the few banks that is offering interest ranging from 3% to 6% to its customers depending on the balance. If you have a balance between Rs 25 lakh and Rs 1 crore in your account, you will get a straight 6% interest. In such a difficult rate-cut environment, this rate is considered attractive.

2. RBL Bank

RBL Bank is currently offering the highest interest on savings accounts. If you have a balance between Rs 25 lakh and Rs 1 crore in your account, the bank will give you up to 6.75% interest. The bank is also offering a rate of 3% to 6% on balances ranging from Rs 1 lakh to Rs 25 lakh. This can be a great option for customers who keep a large amount in their savings account but also want to maintain liquidity.

3. IndusInd Bank

IndusInd Bank’s rates may be slightly limited but are still above the market average. The bank is offering 3% to 3.5% interest on amounts from Rs 1 lakh to Rs 25 lakh and 4% on Rs 25 lakh to Rs 1 crore.

4. Yes Bank

Yes Bank is also offering 4% to 5% interest to its customers on amounts above Rs 25 lakh. Although the interest rate on balances from Rs 1 lakh to Rs 25 lakh is between 3% to 3.5%, but on higher balances this bank is emerging as a competitive option.

5. Central Bank of India

If you talk about public sector banks, Central Bank of India is currently offering 2.90% interest on savings accounts—which is slightly lower than private banks, but it has kept the rates stable despite the recent rate cut.

Also read: Savings account rates cut: Check new interest rates of SBI, HDFC, ICICI, Canara Bank and others

What do experts say?

BankBazaar.com founder and CEO Adhil Shetty says: “We are in a low-return phase for savings products, with most banks offering just 2.7% to 3% on savings accounts. While it’s a good place to park money for quick access, it’s not where your surplus should sit for long. If you’re holding large idle balances, you’re missing out on higher returns elsewhere.”

He suggests fixed or recurring deposits to lock in better rates without compromising safety. Banks also offer auto-sweep accounts, which combine the liquidity of a savings account with the interest of fixed deposits, Shetty said, adding that liquid funds can be another viable alternative if you’re comfortable with short-term market-linked returns.

Banks for which data is not available on their website, are not considered. Highest interest rate offered by bank on respective balance range is shown in the table. Interest rate shown in the table may vary in actual situation depending on variant of savings account and bank’s applicable terms and conditions. Interest calculation may vary from banks to banks based on their rules.

Summing up…

In this period of RBI cutting interest rates, it has become difficult to get high returns on savings accounts. In such a situation, options like Bandhan Bank, RBL Bank and Yes Bank can be best for those customers who want good returns with low risk. Also, instead of limiting your savings to just a savings account, investing it in a planned manner has become a necessity today.