Individuals new to banking and investing prefer savings accounts as these are an ideal option to invest in short or long term savings. is the best option for people who have a regular source of income or are salaried individuals. A lot of public and private sector banks in India offer individuals different kinds of savings account as per their needs and requirements. All banks set interest rates on their savings accounts that usually vary from 2.50% per annum to 7.00% per annum depending on the amount of savings.

Before one opens a savings account in a bank, one must be familiar with the interest rates offered by the bank and the type of savings account an individual is being offered with other facilities. Let us discuss in detail about interest rates offered by the banks:

Best Savings Account Interest Rates for Deposits up to Rs. 1 Lakh

In this category, most banks offer relatively lower interest rates to customers. However, we have segregated the best savings accounts that offer highest interest rate for deposits up to Rs. 1 Lakh below:

Bank Interest Rate Fincare Small Finance Bank Limited 4.11% Jana Small Finance Bank Limited 3.50% RBL Bank Limited 4.25% Utkarsh Small Finance Bank Limited 4.25% Suryoday Small Finance Bank Limited 3.50% YES Bank 4.00% ESAF Small Finance Bank Limited 4.00% IDFC First Bank Limited 4.00% North East Small Finance Bank Limited 4.00% IndusInd Bank 4.00%Best Savings Account Interest Rate for Deposits up to Rs. 1 Lakh to Rs. 5 Lakh Rs. 5 Lakh to Rs. 10 Lakh Rs. 10 Lakh to Rs. 1 Crore Above Rs. 1 Crore
Top Savings Account Interest Rates for Deposits from Rs. 1 Lakh to Rs. 5 Lakh
Many banks offer relatively higher interest rates on deposits from Rs. 1 Lakh and above up to Rs. 5 Lakh on the incremental balance. It is worth noting that the amount up to Rs. 5 Lakh in any bank is insured by DICGC and in case of any eventuality of default by the bank, accountholders will get their money back. Here is the list of best savings account with highest interest rates on deposits ranging between Rs. 1 Lakh to Rs. 5 Lakh:

Bank Interest Rate DBS Bank 7.00% (Above Rs. 3 Lakh) Jana Small Finance Bank Limited 7.00% Utkarsh Small Finance Bank Limited 6.50% Suryoday Small Finance Bank Limited 6.75% Bandhan Bank Ltd. 6.00% Equitas Small Finance Bank Limited 5.25% Ujjivan Small Finance Bank Limited 6.00% Fincare Small Finance Bank Limited 6.11% RBL Bank Ltd. 5.50%
Best Savings Account Interest Rates for Deposits from Rs. 5 Lakh to Rs. 10 Lakh
This band is the highest interest earning band for accountholders of most banks. Thus, banks offer the highest interest rates on the incremental amount in the savings account. Below-mentioned is the list of top savings accounts for deposits ranging from Rs. 5 Lakh to Rs. 10 Lakh:

Bank Interest Rate Jana Small Finance Bank Limited 7.00% Equitas Small Finance Bank Limited 7.00% (Above Rs. 5 Lakh) Ujjivan Small Finance Bank Limited 7.00% Fincare Small Finance Bank Limited 7.11% Utkarsh Small Finance Bank Limited 6.50% Suryoday Small Finance Bank Limited 7.00% DCB Bank Ltd. 6.00% Bandhan Bank Ltd. 6.00% DBS Bank Ltd.
Top Savings Account Interest Rates for Deposits from Rs. 10 Lakh to Rs. 1 Crore
Those who wish to maintain balance from Rs. 10 Lakh to Rs. 1 Crore in their savings account can choose from the below-mentioned list of top banks with highest interest rates in this range:

Bank Interest Rate Ujjivan Small Finance Bank Limited 7.00% Utkarsh Small Finance Bank Limited 7.25% (Incremenatl balance above Rs. 25 lakh up to Rs. 10 crore) DCB Bank Ltd. 7.25% (from Rs. 50 Lakh to less than Rs. 2 crore) AU Small Finance Bank Limited 7.00% (Balances from Rs. 25 Lakh to less than Rs. 1 crore) Fincare Small Finance Bank Limited 7.00% Jana Small Finance Bank Limited 7.25% (More than Rs. 10 Lakh and up to Rs. 1 crore) ESAF Small Finance Bank Limited 6.5% (Above Rs.15 Lakh (i.e. for incremental amount above Rs.15 Lakh) RBL Bank Ltd. 7.00% (Above Rs. 25 Lakh and up to Rs. 7.5 crore) Suryoday Small Finance Bank Limited 7.00% (Above Rs. 50 Lakh and up to Rs. 1 crore) Bandhan Bank Ltd. 6.25%

Best Savings Account Interest Rates for Deposits above Rs. 1 Crore
Accountholders who intend to maintain huge balance in their savings account, i.e. above Rs. 1 Crore, should choose from these best savings account offering highest interest rates in this range:

Bank Interest Rate DCB Bank Ltd. 7.25% (On balances from Rs. 50 Lakh to less than Rs. 2 crore in the account) Equitas Small Finance Bank Limited 7.00% Utkarsh Small Finance Bank Limited 7.25% (Incremenatl balance above Rs. 25 lakh up to Rs. 10 crore) Ujjivan Small Finance Bank Limited 7.00% (Above Rs. 5 Lakh to Rs. 25 crore) SBM Bank (India) Limited 6.75% (Balance more than Rs. 50 Lakh to Rs. 50 crore) Bandhan Bank Ltd. 6.50% (Daily Balance above Rs. 50 crore to Rs. 100 crore) ESAF Small Finance Bank Limited 6.50% Jana Small Finance Bank Limited 7.25% (up to Rs. 10 crore) YES Bank Ltd. 6.25% (More than or equal to Rs. 1 crore to < Rs. 10 crore) Shivalik Small Finance Bank 6.00% (Above Rs. 1 crore to Rs. 2 crore)
How to calculate interest on savings account for varying interest rates?

Why You Need a High-Interest Savings Account
Various banks provide different interest rate on the amount deposited in the bank. This is done to promote people to maintain specific amount in the savings account to reap maximum benefits. Let us understand how interest rate is calculated on different deposited amount in the savings account. Below mentioned is the break-up of digibank by DBS Bank India Limited deposited for savings accounts.