Savings account interest rates after RBI report rate reduction: a quick comparison of the latest interest rates for HDFC, SBI, ICICI, and PNB savings accounts

The Reserve Bank of India (RBI) reduced its 25 basis points (BPS) from 6.50% to 6.25% to 25 basis points (BPS) on February 7, 2025, which is responsible for the Monetary Policy Committee (MPC) meeting. RBI fees from 2020 onwards. The reporate is the interest rate at which RBI lends money to commercial banks due to short-term liquidity requirements. This interest rate cut can reduce bank borrowing costs and lead to lower interest rates on consumer loans and deposits.

Will interest rate reduction affect interest rates in your savings account?

If RBI lowers its repo rate, it would be cheaper for banks to borrow funds. As a result, banks may lower interest rates on their savings accounts to maintain profit margins. Meanwhile, when the Reserve Bank raises its fees in its repository, banks can raise interest rates on savings accounts, attracting more deposits, according to the AU Small Finance Bank website.

The final window for FD investors to book FDS at a higher rate was officially launched as RBI reduced reporate after RBI gapped its reporate. In fact, RBL Bank has already reduced the interest rate given on a small balance at 25 basis points (BPS).

The interest rate on a savings account is calculated based on the account holder’s daily closed balance. Interest will be credited to the account holder’s account monthly or quarterly, at the bank’s discretion.

Here is a quick comparison of the interest rates offered by some major banks in savings accounts, such as the National Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), and Baroda Bank. Let’s take a look at where you can gain the best interest in savings.

National Bank of India Savings Account Interest
For balances up to 10 rupees: 2.70%
For balances above Rs 10: 3.00%
Valid: October 15, 2022

HDFC Bank Savings Account Interest Rates
For balances below 50 rupees: 3.00%
Regarding balances above Rs 50 lakh: 3.50%
Valid: April 6, 2022

Interest rates on ICICI Bank Savings Accounts
For balances below 50 rupees: 3.00%
Regarding balances above Rs 50 lakh: 3.50%

Kotak Mahindra Bank Savings Account Interest
Regarding balance up to Rs 5 lakh: 3.00%
Regarding balance between Rs 5 lakh and Rs 50 lakh: 3.50%
Regarding balances above 500,000 rupees: 4.00%
Valid: October 17, 2024

Interest rates on PNB Savings Accounts
Regarding balance, below 100,000 rupees: 2.70%
Regarding balance of Rs 10 lakh and Rs 100 crore: 2.75%
For balance of Rs 100 crores or more: 3.00%
Valid: January 1, 2023

Baroda Bank Savings Account Interest Rates
Bank of Baroda offers savings accounts rates ranging from 2.75% to 4.10%, depending on your balance.
Regarding balance of Rs 1 lakh and Rs 50 crore: 2.75%
Regarding balance between Rs 50 crores and Rs 200 crores: 3.00%
Regarding balance of Rs 200 crores and Rs 500 crores: 3.05%
Regarding balance between Rs 500 crore and 1,000 rupees: 4.10%
Valid: February 27, 2024.