With savings account interest rates dropping at major banks after the RBI repo cuts, many investors are seeking better returns. Thankfully, several small finance and digital banks now offer high-yield savings accounts delivering 6–8% p.a., a great alternative to low-return bank deposits. Here are the best options to maximize growth while maintaining liquidity.
1. AU Small Finance Bank – Up to 7.25% p.a.
AU Small Finance Bank continues to lead with a top rate of 7.25% annually. Ideal for high-balance accounts, it features a ₹5,000 minimum balance and monthly interest payouts. It supports full digital onboarding and offers reliable customer service.
More info: https://brmgsu.in/top-5-high-interest-savings-accounts-in-india-for-2025/ and https://suryavanshischool.com/high-interest-savings-accounts-2025/
2. Equitas Small Finance Bank – Up to 7.00% p.a.
Equitas offers interest up to 7% per annum with a minimum balance of ₹5,000–₹10,000. It charges no penalties on low balances and provides a robust mobile app, making it perfect for students and freelancers.
More info: https://brmgsu.in/top-5-high-interest-savings-accounts-in-india-for-2025/
3. IDFC FIRST Bank – Up to 7.00% p.a.
IDFC FIRST Bank matches high returns with up to 7% interest, credited monthly. No balance is required, and it includes free NEFT/IMPS/RTGS transfers. This is ideal for salaried individuals and regular savers.
More info: https://brmgsu.in/top-5-high-interest-savings-accounts-in-india-for-2025/ and https://short.iyvplus10.org/best-high-yield-savings-accounts-in-india-for-2025/
4. Ujjivan, Jana, Utkarsh, Suryoday, ESAF – Up to 7.50% p.a.
Several small finance banks offer up to 7–7.5% interest for balances over ₹1–5 lakhs. Ujjivan’s Maxima account, for instance, provides tiered rates—about 7.25% for ₹5–25 lakhs and 7.5% on higher balances.
More info: https://budgetindia.in/top-savings-accounts-for-high-interest-in-india-2025/ and https://www.swarozgar.in/top-high-interest-savings-accounts-india/
5. RBL Bank – Up to 6.75% p.a.
RBL savings accounts offer up to 6.75% on balances above ₹25 lakhs. With easy online onboarding and debit card perks, it’s suitable for high-balance account holders.
More info: https://budgetindia.in/top-savings-accounts-for-high-interest-in-india-2025/ and https://short.iyvplus10.org/best-high-yield-savings-accounts-in-india-for-2025/
6. Yes Bank – Up to 6.25% p.a.
Yes Bank provides up to 6.25% interest on savings, along with lifestyle benefits like airport lounge access, making it a premium option under ₹10 lakhs balances.
More info: https://brmgsu.in/top-5-high-interest-savings-accounts-in-india-for-2025/ and https://short.iyvplus10.org/best-high-yield-savings-accounts-in-india-for-2025/
7. DCB Bank – Up to 8.00% p.a. on high balances
DCB Bank offers a stellar rate of 8% p.a. for account balances between ₹1–3 crores. With quarterly interest payouts, it’s one of the highest rates available in India in 2025.
More info: https://short.iyvplus10.org/best-high-yield-savings-accounts-in-india-for-2025/ and https://www.bankbazaar.com/savings-account/savings-account-interest-rates.html
8. DBS Digibank – Up to 6.50% p.a.
No minimum balance and a fully digital process make DBS Digibank an excellent choice for millennials and digital-first users, offering up to 6.5% interest.
More info: https://short.iyvplus10.org/best-high-yield-savings-accounts-in-india-for-2025/
9. Kotak 811 – Up to 4% p.a.
While only offering up to 4%, Kotak 811 remains a popular zero-balance account with seamless digital onboarding and everyday utility.
More info: https://fullsupport.in/finance/high-interest-savings-account-india-2025
10. SBI Plus / Others – 5.5–6.5% via auto-sweep
SBI Plus and similar accounts offer around 5.5% interest with the advantage of auto-sweep to FDs, blending liquidity with higher returns.
More info: https://fullsupport.in/finance/high-interest-savings-account-india-2025 and https://globaltimes.tech/finance/high-interest-savings-bank-accounts-2025/
🧠 Which Account Is Right for You?
If you’re building an emergency fund, choose zero-balance digital accounts like IDFC FIRST or AU SFB. For larger savings over ₹1 lakh, accounts such as Ujjivan, Equitas, and RBL offer excellent returns. High-net-worth individuals can explore DCB Bank’s 8% high-balance slabs. Ensure accounts are government-insured (up to ₹5 lakh), provide monthly payouts, and come with intuitive apps.
⚠️ Recent Update: Rate Cuts by Major Banks
Following RBI’s 50 bps repo rate cut in June 2025, SBI dropped its savings rate to 2.5%, and HDFC/ICICI to 2.75%, prompting savers to switch to high-yield options.
More info: https://economictimes.indiatimes.com/wealth/save/big-hit-for-savings-account-holders-sbi-hdfc-bank-icici-bank-cut-interest-rates-in-june-2025/articleshow/121908404.cms and https://timesofindia.indiatimes.com/business/financial-literacy/savings/top-banks-cut-savings-account-rates-after-rbi-rate-cut-decision-sbi-drops-to-2-5-hdfc-and-icici-now-at-2-75/articleshow/121932897.cms
Summary Table
| Bank | Interest Rate | Minimum Balance | Best Feature |
|---|---|---|---|
| AU SFB | Up to 7.25% | ₹5,000 | Monthly interest, digital banking |
| Equitas SFB | Up to 7.00% | ₹5–10,000 | No penalties, great app |
| IDFC FIRST | Up to 7.00% | ₹0 | Free transfers, monthly payouts |
| Ujjivan / Utkarsh / … SFBs | Up to 7.50% | ₹2–5 lakhs | High slab rates, strong digital tools |
| RBL | Up to 6.75% | ₹25 lakhs | Debit card perks |
| DCB | Up to 8.00% | ₹1–3 crores | Highest high-balance rate |
| DBS Digibank | Up to 6.50% | ₹0 | Fully digital, zero balance |
| Kotak 811 | Up to 4.00% | ₹0 | Smooth onboarding, app use |
| SBI Plus | 5.5% (with sweep) | ₹25,000 | Liquidity + FD sweep |
✅ Final Word
As traditional bank savings rates fall below 3%, smart savers are turning to high-interest alternatives. For capital preservation with healthy returns, small finance banks like AU, Equitas, IDFC FIRST, Ujjivan, and UBL offer compelling options. With minimum KYC and fully digital processes, opening such accounts in 2025 is faster and more rewarding than ever.
