As of 2026, the standard SBI Savings Account interest rate is 2.50% p.a. Across all account balances, with some accounts starting from 2.7% p.a. This rate applies to all savings accounts, including those for senior citizens, as per the latest revisions. The Reserve Bank of India (RBI) mandates that banks compute interest on a daily closing balance.
| Parameter | Details |
|---|---|
| Standard Interest Rate (all balances) | 2.50% p.a. (effective 15.06.2025 / 01.04.2026) |
| Interest Rate (starting from) | 2.7% p.a. (as of 2026) |
| Minimum Balance Requirement | NIL (waived off from 11.03.2020 / 11.03.2022) |
| Resident Foreign Currency Domestic Account Minimum Balance | USD 500, EURO 500 or GBP 250 |
| Minor’s Account Maximum Balance | ₹10 lakh |
| Small Savings Account Maximum Balance | ₹50,000 |
| Small Savings Account Annual Credit Limit | ₹1 lakh (aggregate of all credits in a financial year) |
| Small Savings Account Monthly Withdrawal/Deposit Limit | ₹10,000 (aggregate of all withdrawals and deposits in a month) |
| Tax Deduction on Interest Income | Up to ₹10,000 under Section 80TTA of the Income Tax Act, 1961 |
| Inoperative Account Activation | No additional cost (for accounts inoperative for over 24 months) |
| SMS Balance Check | Send ‘BAL’ to 09223766666 from registered mobile number |
| Last Interest Rate Revision Date | October 2022 (for general savings accounts) |
The interest rate on SBI savings accounts is calculated daily on the closing balance and credited half-yearly. While the standard rate is 2.50% p.a., the bank also offers various SBI loan products with different interest structures.
SBI Savings Account Types & Rates
State Bank of India (SBI) offers a standard interest rate of 2.50% p.a. On all savings accounts, effective from June 15, 2025 (Source: SBI website). This rate applies across various account types, including those for minors and small savings accounts. The bank removed the penalty for not maintaining a minimum balance in all savings accounts from March 11, 2020.
| Account Type | Interest Rate (p.a.) | Key Feature |
|---|---|---|
| All SBI Savings Accounts (General) | 2.50% (w.e.f. 15.06.2025) | No minimum balance requirement (waived off 11 March 2020/2022) |
| SBI Savings Accounts (General) | Starting from 2.7% (as of 2026) | Allows nomination facility and issues ATM cards |
| Resident Foreign Currency Domestic Account | 2.50% (w.e.f. 15.06.2025) | Minimum balance required: USD 500, EURO 500 or GBP 250 |
| Minor’s Account | 2.50% (w.e.f. 15.06.2025) | Maximum balance is ₹10 lakh |
| Small Savings Account | 2.50% (w.e.f. 15.06.2025) | Maximum balance is ₹50,000; no fees or charges |
| MACAD (Motor Accident Claim Annuity Deposit) Account | 2.50% (w.e.f. 15.06.2025) | Receives interest on compensation money from motor vehicle accidents |
| NRE SB Account | 2.50% (w.e.f. 15.06.2025) | For Non-Resident External customers |
| SBI Savings Plus Account | Same as prevailing savings account rates | Linked to Multi Option Deposits (MODS), surplus funds auto-transferred for higher interest |
| SBI Senior Citizens Savings Scheme (SCSS) | 8.2% (Q1 FY 2026-27) | Interest paid quarterly; rate remains fixed till maturity once locked |
SBI Savings Account Interest Rates by Account Type
The interest rate on SBI savings accounts is computed daily based on the closing balance, as mandated by the Reserve Bank of India (RBI). For a broader view of deposit options, you can compare SBI interest rates 2026 across various schemes.
SBI Savings Account Interest Calculation
State Bank of India (SBI) calculates interest on savings accounts daily, based on the end-of-day balance in the account. The Reserve Bank of India (RBI) mandates this daily calculation for all savings accounts across banks. As of 2026, the standard interest rate for SBI savings accounts is 2.50% p.a., applicable across all account balances (Source: SBI website, 2026).
The interest earned on an SBI savings account is credited to the account quarterly or half-yearly, depending on the bank’s policy. This interest is taxable under ‘Income from Other Sources’ for individuals and HUFs, who can claim a deduction of up to ₹10,000 under Section 80TTA of the Income Tax Act, 1961.
Here’s how SBI savings account interest is typically calculated and applied:
- Daily Balance Method: SBI computes interest on the daily closing balance in your savings account. This means that even small fluctuations in your account balance impact the total interest earned over time.
- Standard Interest Rate: As of 2026, SBI offers a uniform interest rate of 2.50% p.a. On all savings account balances, regardless of the amount held. This rate was effective from June 15, 2025.
- Quarterly/Half-Yearly Credit: The calculated interest is typically credited to your savings account at the end of each quarter or half-year. This allows the interest to compound over time.
- No Minimum Balance Penalty: SBI removed the penalty for not maintaining a minimum balance in savings accounts from March 11, 2020. This ensures that interest calculation is not affected by low balances.
- Tax Deduction Benefit: Interest income from an SBI savings account is eligible for a tax deduction of up to ₹10,000 under Section 80TTA of the Income Tax Act, 1961, for individuals and Hindu Undivided Families (HUFs).
- Special Account Considerations: For accounts like the SBI Savings Plus Account, which is linked to Multi Option Deposits (MODS), surplus funds above ₹25,000 are automatically transferred to a term deposit. These transferred funds earn higher interest rates, similar to SBI’s prevailing rates for Special Term Deposits (STDR) and Term Deposits (TDR), based on the chosen tenure.
Understanding the daily interest calculation helps account holders maximize their earnings by maintaining higher balances. You can also explore other investment options like Post Office interest rates for additional savings growth.
Eligibility for SBI Savings Account
To open an SBI savings account, applicants must be resident Indians aged 18 years or above, without an existing relationship with SBI. As of 2026, the bank has waived the minimum balance requirement for most savings accounts, making them accessible to a wider range of customers (Source: SBI website).
- Age and Residency: Applicants must be resident Indian citizens and at least 18 years old. Minors can open specific accounts, often with a guardian.
- Existing Relationship: New customers without a prior banking relationship with SBI are eligible to open a savings account.
- KYC Documentation: A valid Aadhaar card is necessary for online applications. For offline applications, other RBI-approved KYC documents like PAN card, passport, or driving license are accepted.
- Minimum Balance: SBI removed the minimum balance penalty for all savings accounts on March 11, 2020. This means most SBI savings accounts can be maintained with a zero balance.
- Maximum Balance Limits: While most accounts have no maximum balance limit, minor accounts have a maximum balance of ₹10 lakh. Small savings accounts are capped at ₹50,000.
- Nomination Facility: All SBI savings accounts offer a nomination facility, allowing account holders to designate a beneficiary.
- Online Application Process: After submitting an online application with Aadhaar details, customers must visit a branch with KYC documents for verification and account activation within 3-5 business days.
Understanding these eligibility criteria helps ensure a smooth account opening process for those interested in SBI’s savings account interest rate offerings.
How to Open an SBI Savings Account
Opening an SBI savings account in 2026 involves a straightforward online application followed by a branch visit for KYC verification. As of March 11, 2022, SBI has waived the minimum balance requirement for all savings accounts, making them accessible to a wider range of customers.
- Online Application: Visit the official State Bank of India website and navigate to the ‘Accounts’ section. Select ‘Savings Account’ and click on the ‘Apply’ option to begin.
- Fill Application Form: Provide requested details such as your name, date of birth, and address in the online application form. An Aadhaar card is necessary for online account opening.
- Submit Online Form: After entering all details, click on the ‘Submit’ option to complete the online application process.
- Branch Visit for KYC: Following online submission, visit your nearest SBI branch with all necessary Know Your Customer (KYC) documentation.
- Document Verification: SBI will initiate a verification process for your submitted documents. This typically takes 3-5 business days.
- Account Activation: Once verification is complete, your SBI savings account will be activated. You will receive your account details and welcome kit.
- No Minimum Balance: As of 2026, SBI does not levy any penalty for not maintaining a minimum balance in most savings accounts (Source: SBI website).
- Inoperative Account Activation: Accounts inactive for over 24 months can be reactivated without additional cost by visiting a branch.
This process ensures a smooth transition from application to an active account, allowing you to benefit from SBI’s offerings, including the SBI interest rates 2026 on savings accounts.
SBI Savings Account Vs. Other Banks
As of June 2026, SBI offers a standard savings account interest rate of 2.50% p.a. Across all balances (Source: SBI website). This compares to a broader market range of 1.50% to 8.00% p.a. Offered by various private and public sector banks, depending on the balance maintained.
While SBI has waived minimum balance requirements for most savings accounts since March 2022, other banks may still impose such conditions. Comparing these aspects helps in choosing the best savings account for your needs.
| Bank | Savings Account Interest Rate (p.a.) | Minimum Balance (Rs.) | Key Benefit |
|---|---|---|---|
| State Bank of India (SBI) | 2.50% (w.e.f. 15.06.2025) | NIL (except RFC Domestic Account) | No penalty for not maintaining minimum balance (since March 2022) |
| HDFC Bank | 3% (for balances < ₹50 lakh, as of April 12, 2025); 3.50% (for balances ≥ ₹50 lakh, as of April 12, 2025) | Varies by account type | Extensive phone banking services for various transactions |
| ICICI Bank | 3% (for end-of-day balances < ₹50 lakh); 3.50% (for end-of-day balances > ₹50 lakh) | Varies by account type | Interest computed daily on the closing balance |
| Punjab National Bank (PNB) | 2.70% (for balances < ₹10 lakh, as of Feb 16, 2022); 2.75% (for balances ₹10 lakh to < ₹100 crore, as of Feb 16, 2022); 3% (for balances ≥ ₹100 crore, as of Feb 16, 2022) | Varies by account type | Tiered interest rate structure rewards higher balances |
| Post Office | 4% (per annum, as of 2026) | ₹500 | Government-backed safety with a fixed interest rate |
| Yes Bank | 4.00% (for balances up to ₹1 lakh, as of 2025) | Varies by account type | Higher interest rates for lower balances |
Savings Account Interest Rates Across Banks
While SBI offers a consistent interest rate, other banks provide tiered structures that may benefit those maintaining higher balances. Consider the overall SBI interest rates 2026 across various products before making a decision.
Taxation on SBI Savings Account Interest
Interest earned on an SBI savings account is taxable under the head ‘Income from Other Sources’. As of 2026, individuals and Hindu Undivided Families (HUFs) can claim a deduction of up to ₹10,000 on this interest income under Section 80TTA of the Income Tax Act, 1961. This deduction helps reduce the overall tax liability on savings.
For resident senior citizens, a higher deduction of up to ₹50,000 is available on interest earned from all deposits, including SBI fixed deposits and savings accounts, under Section 80TTB. This provision offers significant tax relief for older individuals. Investors can also claim tax benefits up to ₹1.5 lakh under Section 80C by investing in an SBI Tax Savings Scheme.
Key Takeaways
- SBI savings account interest is taxable under ‘Income from Other Sources’.
- Individuals and HUFs can claim a tax deduction of up to ₹10,000 on savings account interest under Section 80TTA.
- Resident senior citizens can claim a higher deduction of up to ₹50,000 on deposit interest under Section 80TTB.
Review your annual interest income and consult a tax advisor to understand your specific tax obligations and available deductions.
Frequently Asked Questions (FAQs)
What is the SBI savings account interest rate in 2026?
As of 2026, State Bank of India (SBI) offers a standard interest rate of 2.70% p.a. on savings accounts for balances up to ₹10 crore. For balances above ₹10 crore, the interest rate is 2.70% p.a., as per SBI’s official website. This rate applies across most SBI savings account types.
Is there a minimum balance requirement for SBI savings accounts in 2026?
No, SBI has removed the minimum balance requirement for all its savings accounts since March 11, 2020. Account holders are not charged any penalty for not maintaining an average monthly balance. The only exception is the Resident Foreign Currency Domestic Account, which requires a minimum balance of USD 500, EURO 500, or GBP 250.
How is interest calculated on an SBI savings account?
SBI calculates interest on the daily closing balance in your savings account. The interest is typically credited to your account on a quarterly basis. This calculation method ensures you earn interest on the exact amount held in your account each day.
Is SBI savings account interest taxable?
Yes, interest earned on an SBI savings account is taxable under the head ‘Income from Other Sources’ as per the Income Tax Act, 1961. Individuals and Hindu Undivided Families (HUFs) can claim a deduction of up to ₹10,000 on this interest income under Section 80TTA. Senior citizens can claim a higher deduction of up to ₹50,000 under Section 80TTB.
What documents are needed to open an SBI savings account?
To open an SBI savings account, you typically need identity proof (e.g., Aadhaar card, PAN card, Passport) and address proof (e.g., Aadhaar card, utility bills). For online account opening, Aadhaar is generally mandatory, while offline applications may accept other RBI-approved documents. You also need a recent passport-sized photograph.
Can I open an SBI savings account online?
Yes, you can open an SBI savings account online through the bank’s official website or the YONO SBI app. The process usually involves filling out an application form, completing KYC verification via video call, and submitting digital copies of required documents. This digital process offers convenience and speed.
What is an inoperative SBI savings account?
An SBI savings account becomes inoperative if there are no customer-initiated transactions for more than 24 months. The bank does not charge any additional cost for the activation of these accounts. You can reactivate an inoperative account by submitting a request and completing KYC verification at an SBI branch.
