Savings Account Interest Calculator India — Balance & Interest 2026

Last updated: 29 April 2026 Reviewed by Arjun Mehta, CA

**Savings account interest** in India is calculated on the daily minimum balance and credited quarterly or monthly, depending on the bank. Rates range from 2.5% p.a. at major PSU banks to 7% at select small finance banks. Interest up to ₹10,000 per year is tax-free under Section 80TTA (₹50,000 under 80TTB for seniors).

Account Balance (₹)

Interest Rate (% p.a.) SBI/HDFC: 3.5%; Small finance banks: up to 7%

Period (Months)

Monthly Interest Earned —

Quarterly Interest —

Annual Interest —

Balance After Period —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹5 lakh in SBI savings account for 12 months

₹5 lakh at 3.0% for 12 months: monthly interest ₹1,250, annual ₹15,000. Compared with SBI FD at 6.8%: annual interest ₹34,000. Keeping ₹5 lakh in savings instead of FD costs ₹19,000/year in forgone interest.

AU Small Finance Bank — 7% savings account

₹5 lakh at 7% (AU Small Finance): annual interest ₹35,000. Nearly same as FD but with instant liquidity. However, deposits are insured only up to ₹5 lakh per bank under DICGC — important if balance approaches this limit.

Frequently Asked Questions

What is the savings account interest rate in India 2026?

Major banks: SBI 3.0%, HDFC Bank 3.5%, ICICI Bank 3.5%, Axis Bank 3.5%. Small finance banks: AU Small Finance 7%, Unity Small Finance 6%, Equitas 5.5%. Interest is calculated daily on closing balance and credited quarterly. TDS applies if interest exceeds ₹10,000/year.

How is savings account interest calculated?

Interest = Daily Closing Balance × Annual Rate ÷ 365. Interest is calculated daily and credited quarterly (Jan, Apr, Jul, Oct). You earn interest on the daily balance, so withdrawals reduce interest. Maintain higher balance on month-end for better interest calculations in some banks.

Should I keep large amounts in savings account?

No. Savings accounts pay 3.5–7% while FDs offer 7–8% and liquid funds 7–8.5% with daily liquidity. For idle money above ₹1 lakh: sweep-in FD (automatically sweeps to FD at threshold), liquid funds (redeemable T+1, similar returns to savings for high balances), or ultra-short-term debt funds.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. Calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.