Savings Account Interest Rates 2024 - Get upto 7.0%* Interest Rate
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Bank Interest Rates on Savings Account

A savings account often serves as the initial means of financial savings for many individuals. It offers convenient access to daily expenses while also providing a steady interest rate. An essential aspect to consider is the fluctuation of savings account interest rates, typically updated on a quarterly basis and deposited into your bank account. These rates can vary from one bank to another and play a crucial role in determining the eventual growth of your savings.

It is advisable to regularly monitor savings account interest rates and carefully choose the one that maximises your returns. Kotak Mahindra Bank offers a range of savings account options that can vary based on your financial goals, thereby facilitating effective financial growth.



Interest Rates for Savings Account



For balances up to Rs. 50 lakhs

For balances above Rs. 50 lakhs

A. Domestic (W.e.f. June 13, 2022)

3.50% p.a.

4% p.a.

B. Non-Resident (NRE/NRO)

3.50% p.a.

3.50% p.a.

  • You can also earn up to 7% FD-like interest on your savings account surplus balance exceeding Rs. 25,000 with the ActivMoney facility available on Kotak Edge Savings Accounts and My Family Savings Account.
  • The bank offers floating-rate interest on savings deposits. Details of the same are as follows:


The bank offers floating rate linked savings deposit. Details of the same are as under :

Up to Rs. 50 Lakh

3.5% p.a.

Above Rs. 50 lakh and up to Rs 50 crore

4% p.a.

# Above Rs. 50 crore and up to Rs 600 crore*

MIBOR + 5.2 bps p.a.

# Above Rs. 600 crore and up to Rs 1000 crore*

MIBOR + 50 bps p.a.

# Above Rs. 1000 crore*

MIBOR +70 bps p.a.


  • MIBOR Linked floating interest rate will be applicable on entire balance above Rs. 1 lakh (all rates applicable on the end of the day balances) if the balance exceeds Rs. 50 crore, 600 Cr or Rs. 1000 crore as the case may be.
  • For more details on MIBOR Linked Floating Interest rate please contact your relationship manager or visit your nearest Kotak Mahindra Bank Branch

#The above rates are effective from 17th January’24

Periodicity of Interest Payment

The periodicity of interest payment plays a significant role in the performance of your savings account. Here's a quick look:


Quarterly Payment

Quarterly interest payment means the savings account interest is credited every three months.

Explanation of Interest Calculation (daily product basis)

The interest calculator on a daily product basis for your savings is simply expressed in mathematical terms that show what happens every day until you reach the end of the month. The amount accrues based on your account’s end-of-day balance multiplied by the daily interest percentage and added for the specified duration of time. Using this approach will make sure that you get every penny back with interest as your savings grow while you work.

Why Savings Account Interest Rates Matter

The Savings account interest rate is the amount of annual interest an individual earns on money deposited within their savings account. Depending on different banks and financial institutions, these rates may change and affect the savings accumulation. Savings account interests are usually computed each month or three months, depending on their frequency.


Frequently Asked Questions

1. What Are Savings Account Interest Rates?

Savings accounts have different payout frequencies in different banks. Usually, it is paid on the first day of each quarter, except the last one, where it is credited on the last day. Some banks allow their customers to opt out of monthly interest payouts, where interest is credited on their first or last day. This is flexible enough to accommodate varied consumer tastes and demands.

2. What is a savings account interest calculator?

A savings account interest calculator is an easy-to-use online tool that helps you determine the interest amount you can earn on your savings account balance. This calculator is available on the websites of different banks and is usually free to use.

Using a savings account interest calculator, you can evaluate how much amount you need to keep in your savings account to achieve your financial goals.

3. How to use a savings account interest calculator?

The bank interest rate on a savings account is calculated on the daily balance maintained in it. However, the interest is credited into a savings account only after the end of the quarter. Usually, it is paid on the first day of every quarter except the last quarter.

4. How does the monthly interest credit for the savings account work?

Usually, the interest earned on your savings account is credited to it on the first day of every quarter. However, some banks provide the facility of monthly interest credit on their savings accounts. Here, the interest amount is credited into a savings account on the first day of every month instead of every quarter. However, the method for the calculation of the interest remains the same.

5. What is the frequency of savings bank account interest payout?

The frequency of savings account interest payout varies between banks. Typically, it's paid quarterly, on the first day of each quarter, except for the last quarter, when it's credited on the last day. Some banks offer monthly interest payout options, where interest is credited on the first or last day of each month. This flexibility caters to diverse customer preferences and needs.

6. How often is the interest rate on a savings account calculated?

The interest rate on a savings account is calculated on the daily balance. Banks consider the minimum account balance of the day to determine your savings account interest. However, it is credited only after the end of the quarter. Banks have the liberty to revise their savings account interest from time to time, depending on the changes in the Reserve Bank of India’s repo rate and the bank’s internal policies.

7. Do savings accounts pay interest monthly?

Generally, a savings account earns interest at the beginning of every quarter. However, some banks offer the opportunity to receive monthly interest payments in order to attract clients. This refers to the case of monthly payment, where the savings account interest is paid at either the beginning or end of the specified period, allowing more flexibility.

8. How do banks calculate the interest on a savings account?

Savings are earned in banks depending on the average minimum of daily balances multiplied by the annual percentage rates (APY) and their duration in days (often 1/365 or 0.00274). The daily interest accrues to the account at the close of every quarter or month. As a fast computation, you may do this with a savings account interest calculator.

9. What's the difference between fixed and variable interest rates on savings accounts?

Savings account interest rates are either fixed or variable; they vary in stability. They offer fixed rates that are constant within a given period, making it possible for one to have certain expectations even though this is not always true. The other variety is the variable rate, which can fluctuate depending on market changes and may be able to give out better returns, although they are not sure.

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