With inflation rising and expenses growing, parking your savings in a regular bank savings account that offers less than 4% interest might not be the smartest move. Luckily, many banks and fintech companies in India now offer high-interest savings accounts that give you better returns — sometimes up to 7% per annum — with full liquidity and safety.
This guide will help you find the best high-interest savings accounts available in 2025, so you can grow your money without locking it away.
Why Choose a High-Interest Savings Account?
- Better returns than traditional savings accounts
- Easy access to funds anytime without penalties
- Often zero or minimal account maintenance fees
- Backed by deposit insurance up to ₹5 lakh (under DICGC)
Top High-Interest Savings Accounts in India (2025)
| Bank/Provider | Interest Rate (p.a.) | Minimum Balance | Features |
|---|---|---|---|
| RBL Bank Savings Plus | Up to 7% | No minimum | Unlimited free withdrawals, zero balance account |
| IDFC FIRST Bank Savings Account | Up to 6.5% | No minimum | Zero balance, free online fund transfers |
| IndusInd Bank Savings Account | Up to 6.25% | ₹10,000 | Free online transactions, high interest tiers |
| Yes Bank Savings Account | Up to 6% | ₹10,000 | Multiple account variants, free debit card |
| Axis Bank ASAP Savings Account | Up to 6% | No minimum | Instant account opening, digital-first experience |
| Kotak 811 Digital Savings Account | Up to 5.5% | No minimum | Zero balance, easy mobile app management |
Things to Consider Before Opening a High-Interest Savings Account
- Interest calculation method: Daily or monthly compounding can affect returns
- Account maintenance fees: Look for zero or low fees
- Minimum balance requirements: Choose based on your comfort
- Withdrawal limits: Some accounts restrict number of free withdrawals
- Customer service & digital experience: Mobile apps, net banking ease
How to Maximize Your Returns
- Keep your savings above any minimum balance to avoid fees
- Use digital-only savings accounts to enjoy better interest rates
- Avoid frequent withdrawals that could reduce interest earned
- Combine multiple savings accounts if needed for liquidity and returns
FD vs. High-Interest Savings Account: What’s Better?
| Aspect | Fixed Deposit (FD) | High-Interest Savings Account |
|---|---|---|
| Interest Rate | 6% to 7.5% (depending on tenure) | 5.5% to 7% (varies by bank) |
| Liquidity | Locked for tenure; penalty on early withdrawal | Instant access to funds |
| Risk | Very low | Very low |
| Ideal for | Long-term savings | Emergency funds, short-term savings |
Final Thoughts
High-interest savings accounts are a smart choice for growing your liquid savings without any risk or lock-in period. In 2025, digital banks and neo-banks are pushing interest rates higher, so take advantage while rates last!