Saving Bank Account: This decision will come into effect on January 9, 2026. Let us explain in detail. Although the bank has not yet responded, the information has been posted on its website. You can learn more about it by clicking on the link in the news.
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Saving Bank Account: If you have a savings account, this news is very useful for you. The bank has changed the interest rates on savings accounts, effective January 9, 2025. The bank has reduced the interest rates on savings accounts. The interest rate for savings account balances between Rs 5 lakh and Rs 10 lakh has been reduced from 7% to 5%. Now, different rates will apply depending on the amount of money in your account. The bank calls this a “progressive interest rate”—meaning that different interest rates will be charged depending on the slab in which your money falls. The bank will credit the interest every month, ensuring regular benefits for customers.
New interest rates (effective December 17, 2025)
Up to ₹5 lakh – 3%
₹5 lakh to ₹5 crore – 7%
₹5 crore to ₹10 crore – 6.75%
₹10 crore to ₹25 crore – 6%
₹25 crore to ₹100 crore – 5%
₹100 crore and above – 4%
These rates apply on a strictly progressive basis, meaning each slab will have different interest rates.
Old rates (as of January 9, 2025)
Up to ₹1 lakh – 3%
₹1 lakh to ₹10 lakh – 5%
₹10 lakh to ₹10 crore – 6.5%
₹10 crore to ₹25 crore – 6%
₹25 crore to ₹100 crore – 5%
Above ₹100 crore – 4%
Comparison of new vs. old rates – Where are the big benefits and where are the losses?
1. Impact on small balance holders
Previously, the interest rate was 3% up to 1 lakh, but now it will be only 3% up to 5 lakh. This means that customers with balances of 1-5 lakh are at a disadvantage – as they previously received 5% interest on 1-10 lakh.
2. Huge benefit for those with mid-range balances
Previously, the interest rate was 5% on 1-10 lakh, but now it is 7% on 5 lakh to 5 crore. This is the biggest change – a super benefit for middle-class and high-saving customers.
3. Slight increase in the 5-10 crore slab
Previously, the interest rate was 6.5% on 10 lakh to 10 crore. Now, the interest rate on 5-10 crore will be 6.75% – a slight benefit.
4. Rates above 10 crore rupees remain almost the same
10–25 crore rupees → 6% previously, still 6%
25–100 crore rupees → 5% previously, still 5%
Above 100 crore rupees → 4% previously, still 4%
This means there has been no significant impact on large corporate and HNI customers.
The new savings rates clearly indicate that the bank is now more interested in attracting customers with mid-sized deposits. For customers with deposits between ₹5 lakh and ₹5 crore, 7% is a very high rate, which will be considered very competitive in the market. However, this change is not as beneficial for those with smaller balances, as the interest rate, which used to be 5% for deposits between ₹1–10 lakh, has now been reduced to just 3%.
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