KEY HIGHLIGHTS
- RBI has set a uniform interest rate on savings up to ₹1 lakh for all banks.
- Customers no longer need to compare interest rates across banks.
- Above ₹1 lakh, banks will continue offering different interest rates.
If you’ve ever hopped between banks hoping for “thoda extra interest,” that headache is gone now.
RBI has brought all banks under one rule — every bank must offer the same savings account interest rate on deposits up to ₹1 lakh.
This single move has cleared years of confusion for crores of account holders across India.
Earlier: SBI had one rate, HDFC another, ICICI a different one.
Now: All the same… at least till ₹1 lakh.
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And yes — this applies to SBI, HDFC, ICICI, PNB, Canara Bank, Kotak, Axis, and all other commercial banks.
Summary Table: What Changes for You?
| Feature | Earlier | Now (New RBI Rule) |
|---|---|---|
| Interest rate on savings up to ₹1 lakh | Different for every bank | Same for all banks |
| Choice of bank | Based on interest rates | Based on service, branch access, app quality |
| Interest above ₹1 lakh | Bank decides | Still bank decides |
| Confusion level | High | Almost zero |
| Interest credit | Quarterly/minimum frequency varied | Must be at least every 3 months |
What Exactly Has RBI Announced?
RBI has asked all commercial banks to follow a uniform interest rate on savings account balances up to ₹1 lakh.
Earlier, every bank decided its own rate, leaving customers confused about where their money grows better.
Now, no matter which bank you choose, the interest rate up to ₹1 lakh stays the same.
This makes choosing a bank much simpler — focus on things that actually matter:
- ATM reach
- Branch network
- Customer service
- App quality
- Extra facilities
What Benefits Do Customers Get?
If your average balance sits around ₹1 lakh (which is common for many middle-class families), this rule is a total stress-buster.
Here’s the real gain:
- Switching banks won’t affect your interest income.
- No need to compare 20 banks for better rates.
- More transparency and less confusion.
- Small savers finally get a fair and consistent return.
It’s basically “service pe focus karo, interest same hi milega.”
What About Balances Above ₹1 Lakh?
This rule applies ONLY till ₹1 lakh.
For higher balances:
- Banks can continue offering different rates.
- Competition stays alive for big deposits.
- Customers can still choose banks offering higher returns for larger savings.
So, if you maintain above ₹1 lakh regularly, interest differences remain.
How Will Interest Be Calculated?
RBI has made this part super straightforward too.
Interest will be calculated on the daily end-of-day balance.
If your balance is higher today, you earn more interest for that day.
If it drops tomorrow, the interest adjusts automatically.
When Will Banks Credit the Interest?
All banks must credit savings interest at least once every 3 months.
So no more waiting endlessly…
Your money keeps earning, and you keep receiving it on time.
Why Has RBI Taken This Step?
Simple reason — clarity.
People were confused with different banks offering different rates.
This rule:
- Simplifies the system
- Makes savings accounts easier to understand
- Reduces unnecessary competition on small deposits
- Ensures fairness for small account holders
Frequently Asked Questions
1. Will this rule affect existing savings accounts?
Yes, every existing and new savings account will follow the same ₹1 lakh uniform rate.
2. Can cooperative banks or small finance banks offer higher rates?
The rule currently applies to commercial banks. Some specialised banks may continue offering different rates.
3. Will the interest rate itself change in the future?
RBI can revise guidelines anytime, and banks may adjust rates above ₹1 lakh based on market conditions.
