Savings Account Interest Rate Comparison: Foreign Banks vs. Private Banks

A savings bank account lets you maximize your hard-earned money while earning a steady rate of interest on the balance you keep with withdrawal flexibility.

Banks today offer a variety of savings bank accounts to meet the financial demands and habits of a wide range of customers. A standard savings account, salary account, senior savings account, zero balance savings account, etc. are all examples of savings accounts offered.

The interest rate also varies depending on the account, the amount and the bank. Here is a quick comparison of foreign bank interest rates with private banks, let’s see who offers the best returns.

Foreign Bank Savings Account Interest Rates

Foreign banks Interest rate
DBS Bank India 3.25% for balance up to Rs 1 lakh
3.5% for balances above Rs 1 lakh and up to Rs 2 lakh on additional amount*
4% for balances over Rs 2 lakhs and up to Rs 5 lakhs on additional amount*
3% for balances above Rs 5 lakhs and up to Rs 5 Cr on additional amount*
3.75% for balances over Rs 5 Cr will get the extra amount on it
HSBC 2% for balance up to Rs 10 crore
2.50% for more than Rs 10 crore
Standard charter 2.75 for balance up to Rs 50 lakh
3.25% for the balance above Rs. 50 lakhs up to Rs 40 crores
0.50% for balances above Rs 40 crores

Interest is calculated daily and paid quarterly, according to Citibank’s website. On a quarterly basis, HSBC pays interest on savings accounts. For standard charter customers, interest will be calculated at the applicable savings bank interest rate on the daily available balance and paid quarterly. According to the DBS Bank website, “Interest will be paid on quarterly repos or on such other repos as the Bank may decide from time to time. Interest will be calculated on the daily available balance or as required by the regulator or due banks decision.”

Private Bank Savings Account Interest Rates

Private banks Interest rate
HDFC Bank 3.00% for balance below Rs 50 lakh
3.50% for more than Rs 50 lakh to less than Rs 1000 Cr
4.50% for the balance above Rs 1000 Cr
ICICI Bank 3.00% for end of day balance below Rs 50 lakhs
3.50% for end of day balance of Rs 50 lakhs and above
Axis Bank 3.00% per annum for balance less than Rs 50 lakh
3.50% per annum for balance above Rs 50 lakh and up to less than Rs 10 Cr

Source: Bank websites

Interest earned is credited to the savings account on a monthly or quarterly basis, depending on the rules of the bank concerned. According to the HDFC Bank website, “Savings Bank interest will be calculated on the daily balances maintained in your account. Savings Bank interest will be paid quarterly.

According to ICICI bank’s website, “Savings bank account interest is calculated daily on the daily closing balance of the account at the rate specified by ICICI bank in accordance with the guidelines of the Reserve Bank of India. Calculated interest is rounded to the nearest rupee.

According to the Axis bank website, “The interest rate is calculated on the balance maintained in the savings account on a daily basis, but is credited to the account on a quarterly basis (on the first day of the following quarter except for the fourth quarter where the interest amount is paid on the last day of the quarter).


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