Top Banks Offering Attractive Interest Rates on Savings Accounts Despite RBI Rate Cuts

Strategic Insights -

In a landscape where the Reserve Bank of India (RBI) has cut the repo rate by 100 basis points in three monetary policy review meetings since February 2025, some private sector banks are bucking the trend by offering attractive interest rates on savings accounts. Despite many banks reducing interest rates on fixed deposits (FDs) and savings accounts, Bandhan Bank, RBL Bank, and a few others continue to offer up to 6.75% interest to high-balance account holders.

Key Takeaways:

  • Bandhan Bank offers interest ranging from 3% to 6% on savings accounts, with a straight 6% interest on balances between Rs 25 lakh and Rs 1 crore.
  • RBL Bank offers up to 6.75% interest on savings accounts with balances between Rs 25 lakh and Rs 1 crore, as well as 3% to 6% on balances ranging from Rs 1 lakh to Rs 25 lakh.
  • IndusInd Bank offers 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.
  • Yes Bank offers 4% to 5% interest to its customers on amounts above Rs 25 lakh.
  • Central Bank of India offers 2.90% interest on savings accounts, the lowest among the top 5 banks.

Statistics:

  • RBI has cut the repo rate by 100 basis points (1%) in three monetary policy review meetings since February 2025.
  • Bandhan Bank offers 6% interest on balances between Rs 25 lakh and Rs 1 crore.
  • RBL Bank offers 6.75% interest on balances between Rs 25 lakh and Rs 1 crore.
  • IndusInd Bank offers 1.5% more interest on balances between Rs 25 lakh and Rs 1 crore compared to other banks.
  • Yes Bank offers 4% to 5% interest on amounts above Rs 25 lakh.
  • Central Bank of India offers the lowest interest rate on savings accounts at 2.90%.

Sources:

  • Bandhan Bank's website (no date provided)
  • RBL Bank's website (no date provided)
  • IndusInd Bank's website (no date provided)
  • Yes Bank's website (no date provided)
  • Central Bank of India's website (no date provided)
  • BankBazaar.com's founder and CEO Adhil Shetty's interview (no date provided)