SBI Savings Account Interest Rate 2026: 2.50% on All Balances
SBI pays 2.50% a year on all savings balances, effective 15 June 2025, worked out on daily balances and credited every quarter.
Written by Rohan Mehta
Updated on 17 September 2026·5 min read
On this page8 sections
The SBI savings account interest rate is 2.50% a year on all balances, in force since 15 June 2025 and unchanged on 17 September 2026. The same rate applies whether you keep ₹1,000 or ₹1 crore, and SBI works it out on your daily closing balance and pays it every quarter.
SBI savings account interest rate 2026: key facts
| Item | Position on 17 September 2026 |
|---|---|
| Interest rate | 2.50% a year, across all account balances |
| Effective from | 15 June 2025 |
| Rate before that | 2.70% |
| How interest is worked out | On the daily closing balance, using a 365-day year |
| When it is paid | Every calendar quarter |
| Minimum interest paid | ₹1; amounts are rounded to the nearest rupee |
| Senior citizens | Same 2.50%; SBI has no separate savings rate for them |
| RBI repo rate | 5.25% |
SBI savings interest rate by account type
SBI’s rate page lists one savings bank rate, 2.50%, for all balances. It publishes no separate rate for the regular, basic savings bank deposit (BSBD) or minors’ accounts. What differs between accounts is the limits and features, not the rate.
| Account | Interest on savings balance | What is different |
|---|---|---|
| Regular savings account | 2.50% | No charge for not keeping an average monthly balance since March 2020 |
| BSBD small account | 2.50% | Balance cannot exceed ₹50,000; withdrawals and transfers capped at ₹10,000 a month |
| Minor’s account | 2.50% | Balance capped at ₹10 lakh (₹20 lakh if joint with a guardian) |
| Savings Plus account | 2.50% on the savings part | Money above ₹50,000 moves into a linked term deposit (MOD) |
Savings Plus: earning more on idle money
In a Savings Plus account, balances above the ₹50,000 threshold sweep into a Multi Option Deposit. The sweep is at least ₹15,000, in multiples of ₹5,000, for a term of one to five years. That part earns the term deposit rate for its tenure, not 2.50%. You can compare those on our SBI fixed deposit rates page.
How SBI calculates savings account interest
SBI multiplies each day’s closing balance by 2.50% and divides by 365. It adds up the daily amounts and credits the total at the end of each calendar quarter. The RBI has required scheduled commercial banks to use this daily product method since 1 April 2010.
- Take the balance at the end of each day.
- Multiply it by 2.50% and divide by 365 to get that day’s interest.
- Add the daily interest for every day in the quarter.
- Round the total: 50 paise or more goes up to the next rupee, less is dropped.
- SBI credits it to the account if it comes to ₹1 or more.
Example. If ₹1,00,000 sits in the account all year, you earn about ₹6.85 a day. Over a 92-day quarter that is ₹630.14, credited as ₹630. Over the full year it comes to ₹2,500.
A larger balance earns proportionately more, since the rate does not change with the amount. For money you will not need for a while, a fixed deposit pays more; try the FD calculator to compare.
SBI savings rate compared with other banks
The large banks we checked all pay 2.50% on ordinary balances. The table shows each bank’s rate for balances below ₹10 crore, from its own rate page.
| Bank | Rate on balances below ₹10 crore | Effective from |
|---|---|---|
| State Bank of India | 2.50% (all balances) | 15 Jun 2025 |
| ICICI Bank | 2.50% (all balances) | 26 Jun 2025 |
| Bank of Baroda | 2.50% (up to ₹50 crore) | 22 Aug 2025 |
| Punjab National Bank | 2.50% (up to ₹100 crore) | 1 Oct 2025 |
| Canara Bank | 2.50% (up to ₹100 crore) | 5 Sep 2026 |
Some of these banks pay more only on very large balances. PNB, for example, pays 2.70% between ₹100 crore and ₹500 crore. The RBI’s own summary of bank rates also shows 2.50% for savings deposits. For more banks, including small finance banks, see our savings account interest rates page.
Tax on SBI savings account interest
Savings interest is taxable as income from other sources, added to your other income and taxed at your slab rate.
- Section 80TTA of the Income-tax Act, 1961 lets individuals and HUFs deduct up to ₹10,000 of savings account interest. Resident senior citizens use Section 80TTB instead, which allows up to ₹50,000 on interest from deposits.
- Both deductions are available only in the old tax regime.
- For tax year 2026-27 onward, the same deductions sit in Section 153 of the Income-tax Act, 2025.
At 2.50%, you would need an average balance of ₹4 lakh for a full year to earn ₹10,000 of interest.
Other rules worth knowing
| Item | Details |
|---|---|
| Minimum balance. | SBI has not charged a penalty for not keeping a minimum balance in regular savings accounts since March 2020, the government told the Lok Sabha in March 2025. |
| Inoperative accounts. | An account with no customer transactions for 24 months becomes inoperative. SBI charges nothing to reactivate it. |
| Rate changes. | SBI sets the rate through its asset-liability committee and can revise it. The last change came after RBI repo rate cuts in 2025. |
Frequently asked questions
What is the savings account interest rate in SBI?
2.50% a year on all balances, effective 15 June 2025. It was still the rate on 17 September 2026.
What is the SBI saving account interest rate for 2026?
2.50% throughout 2026 so far. SBI has not changed it since June 2025.
Does SBI pay a higher savings rate on bigger balances?
No. SBI pays 2.50% across all balances, unlike Bank of Baroda, PNB and Canara Bank, which pay more on balances of ₹50 crore or ₹100 crore and above.
How often does SBI credit savings account interest?
Once a calendar quarter. Interest is worked out on each day’s closing balance.
Is the SBI savings rate higher for senior citizens?
No, seniors get the same 2.50%. They can instead claim up to ₹50,000 of deposit interest as a deduction under Section 80TTB in the old regime.
How much interest will I get on ₹1 lakh in an SBI savings account?
About ₹2,500 a year, or roughly ₹630 a quarter, if the balance stays at ₹1 lakh throughout.
What is the normal interest rate in SBI?
For savings accounts it is 2.50%. Fixed deposits and loans have separate rates that depend on tenure and product.
Sources
- Savings Bank Deposits interest rates — State Bank of India (checked 17 Sep 2026)
- Interest rates — State Bank of India (checked 17 Sep 2026)
- Savings Bank Rules (Abridged) — State Bank of India (checked 17 Sep 2026)
- Savings Plus Account — State Bank of India (checked 17 Sep 2026)
- Basic Savings Bank Deposit Small Account — State Bank of India (checked 17 Sep 2026)
- Current rates — Reserve Bank of India (checked 17 Sep 2026)
- Interest on savings bank accounts on a daily product basis — Reserve Bank of India (checked 17 Sep 2026)
- Savings account interest rates — ICICI Bank (checked 17 Sep 2026)
- Savings bank deposit rates — Bank of Baroda (checked 17 Sep 2026)
- Saving deposit interest rates — Punjab National Bank (checked 17 Sep 2026)
- Savings bank deposit rates — Canara Bank (checked 17 Sep 2026)
- Section 80TTA, Income-tax Act, 1961 — Income Tax Department (checked 17 Sep 2026)
- Unstarred Question 3869, penalty for not maintaining minimum balance — Lok Sabha (checked 17 Sep 2026)
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