Savings Account Interest Rates: Up to 7% on savings account: Canara Bank, BOI, IDFC FIRST revise rates | Personal Finance
Savings accounts are an accessible way to keep money, but the interest earned on these deposits varies. Banks revise their savings rates from time to time, with some using balance-based slabs to offer higher returns to customers maintaining larger deposits. Recent changes by Canara Bank, Bank of India and IDFC FIRST Bank have again brought savings account rates into focus, with advertised rates going as high as 7 per cent a year. However, the highest rates do not apply uniformly to all customers, making it important to check the balance slab applicable to your account.
Canara Bank’s revised savings account rates came into effect from September 5, while Bank of India and IDFC FIRST Bank implemented their revised rates from September 1, 2026.
Canara Bank savings account interest rates
For balances up to Rs 100 crore, the interest rate is 2.50 per cent. It increases to 2.65 per cent for balances from Rs 100 crore to less than Rs 300 crore.
The subsequent slabs are:
Rs 300 crore to less than Rs 500 crore: 3.10 per cent
Rs 500 crore to less than Rs 1,000 crore: 3.40 per cent
Rs 1,000 crore to less than Rs 2,000 crore: 3.55 per cent
Rs 2,000 crore and above: 4 per cent
Bank of India savings account rates
The rate rises gradually with larger balances. Customers with deposits above Rs 1,500 crore and up to Rs 2,000 crore get 3.30 per cent.
At the highest balance levels, the rates rise more sharply:
Above Rs 2,000 crore to Rs 2,500 crore: 4.75 per cent
Above Rs 2,500 crore to Rs 3,000 crore: 5.70 per cent
Above Rs 3,000 crore: 6.25 per cent
The 6.25 per cent rate, therefore, is not a rate that an ordinary savings account holder can expect to earn. It applies only to balances exceeding Rs 3,000 crore.
IDFC FIRST Bank offers up to 7 per cent
From September 1, the bank offers 2.50 per cent on balances up to Rs 3 lakh. For balances above Rs 3 lakh and up to Rs 25 lakh, the rate is 7 per cent a year.
The rate is 6.25 per cent for balances above Rs 25 lakh and up to Rs 5 crore. For balances above Rs 5 crore, the bank offers 5 per cent.
This makes the 7 per cent rate considerably more relevant to individual savers than the top rates offered by Canara Bank and Bank of India. For example, a customer maintaining Rs 10 lakh would fall within the 7 per cent slab, subject to the bank’s applicable calculation methodology and terms.
What does this mean for savers?
The highest advertised rate should not by itself determine where you keep your money. A savings account is primarily meant to provide liquidity and easy access to funds, rather than maximise long-term returns.
A higher savings rate can be useful when a substantial amount is temporarily parked in a bank account. This could include money kept aside for an emergency, a property purchase, an upcoming tax payment or another near-term financial requirement.
However, customers should check the rate applicable to their actual balance rather than relying on the headline rate. They should also look at how the bank calculates interest, when it is credited and whether any specific conditions apply to the account.
Savings accounts should also not be compared with fixed deposits purely on the basis of the interest rate. An FD can provide a fixed return for a specified tenure, while a savings account offers greater flexibility to withdraw money when required.
Why are banks revising savings rates?
The changes also highlight the continuing competition among banks for deposits. Large banks typically offer relatively low savings rates on ordinary retail balances, while some private and small finance banks use higher rates to attract customers and increase their deposit base.
Unity Small Finance Bank, for instance, has also offered rates of up to 7 per cent on certain retail balances following its August 2026 revision.
Look beyond the maximum rate advertised by a bank and check the rate that applies to your own balance. A 7 per cent savings rate can be attractive, but only if your balance qualifies for the relevant slab and the account’s overall terms meet your needs.
