When it comes to personal finance in India, savings accounts are the first step for most households. They are safe, flexible, and come with digital banking benefits. But beyond convenience, savings accounts also earn you interest.
The big question is: Are you getting the best possible interest rate on your savings?
That’s where comparisons become important. In this blog, we’ll explore ICICI Bank Savings Interest Rate vs Other Banks, including public sector giants like SBI, private leaders like HDFC and Axis, and high-yield challengers like IDFC FIRST Bank, RBL, and AU Small Finance Bank.
By the end, you’ll have a clear idea of:
- Where ICICI Bank stands compared to competitors.
- How much extra you could earn by choosing the right bank.
- Whether safety or higher returns should guide your choice.
Why Savings Account Interest Rates Matter
For many people, a savings account is not just for transactions—it’s also where their emergency fund or short-term savings sit.
Even though the difference between 2.50% and 6.75% might look small, let’s break it down with numbers:
- ₹1,00,000 at 2.50% interest = ₹2,500 yearly interest.
- ₹1,00,000 at 6.75% interest = ₹6,750 yearly interest.
That’s a difference of ₹4,250 for every ₹1 lakh saved. If you maintain a balance of ₹5 lakh or more, the difference could be over ₹21,000 a year—without lifting a finger.
This shows why understanding ICICI Bank Savings Interest Rate vs Other Banks can directly impact your financial health.
ICICI Bank Savings Account Interest Rate (September 2025)
As of September 2025, ICICI Bank offers a flat 2.50% per annum on all savings account balances.
Unlike some banks that offer tiered interest depending on how much you deposit, ICICI keeps it simple with one uniform rate.
- Regular Savings Account: 2.50% p.a.
- Senior Citizen Savings Account: 2.50% p.a. (same as regular)
- Premium/Wealth Savings Accounts: 2.50% p.a. (no higher benefit, only lifestyle perks)
This aligns ICICI with other large banks like SBI, HDFC, Axis, and Kotak.
ICICI Bank Savings Interest Rate vs Other Banks
Here’s a detailed comparison across leading Indian banks:
| Bank | Regular Savings Rate | Senior Citizen Rate | Premium Account Rate |
|---|---|---|---|
| ICICI Bank | 2.50% | 2.50% | N/A |
| SBI | 2.50% | 2.50% | N/A |
| HDFC Bank | 2.50% | 2.50% | N/A |
| Axis Bank | 2.50% | 2.50% | N/A |
| Kotak Mahindra Bank | 2.50% | 2.50% | N/A |
| PNB | 2.50% | 2.50% | N/A |
| Bank of Baroda | 2.70%–4.25% | 2.70%–4.25% | N/A |
| Canara Bank | 2.55%–4.00% | 2.55%–4.00% | N/A |
| IDFC FIRST Bank | 3.00%–7.00% | 3.00%–7.00% | N/A |
| Yes Bank | 2.50%–5.00% | 2.50%–5.00% | N/A |
| RBL Bank | 3.00%–6.75% | 3.00%–6.75% | N/A |
| IndusInd Bank | 2.50%–5.00% | 2.50%–5.00% | N/A |
| AU Small Finance Bank | 2.75%–6.75% | 2.75%–6.75% | N/A |
Observation:
- Big banks like ICICI, SBI, HDFC, Kotak, Axis, and PNB stick to 2.50%.
- Mid-level public banks like BOB and Canara offer slightly higher rates (up to 4.25%).
- Challenger banks like IDFC FIRST, RBL, and AU SFB offer the highest—between 6%–7%.
Why Do Smaller Banks Offer Higher Interest?
It’s common to see smaller or newer banks offering double or triple the interest rate compared to ICICI or SBI. Here’s why:
- Customer acquisition strategy – Higher rates attract new customers.
- Liquidity needs – These banks want deposits to fuel lending operations.
- Competition – To stand out against giants like ICICI and HDFC.
However, higher returns can mean perceived higher risk. That doesn’t mean these banks are unsafe (they are regulated by RBI), but historically, customers prefer trusted giants for large balances.
Senior Citizens and Premium Accounts – Any Difference?
One common question is: “Do senior citizens get higher interest on savings accounts?”
The answer is: No.
- Senior citizens get extra benefits on fixed deposits, but savings accounts pay the same rates regardless of age.
Another question is: “Do premium savings accounts like ICICI Wealth or HDFC Imperia give higher rates?”
- Again, No. Premium accounts offer better debit cards, lifestyle privileges, relationship managers, etc., but the interest rate remains the same.
Pros & Cons of ICICI Bank Savings Account
✅ Advantages of ICICI Bank
- Strong brand trust and safety.
- Wide branch and ATM network.
- Excellent digital banking and UPI services.
- Good for long-term banking relationship.
❌ Disadvantages
- Low savings interest rate (2.50%).
- No senior citizen benefit.
- No tiered high-interest options for larger balances.
Should You Stick With ICICI or Switch to Higher-Rate Banks?
This depends on your financial goals.
- If your balance is usually below ₹1 lakh → The interest difference is minimal. Safety and convenience matter more, so ICICI works.
- If you keep ₹5 lakh or more as idle balance → You could earn 2–3X more interest with IDFC FIRST, RBL, or AU SFB.
- If you want a mix of safety + returns → Keep emergency funds in ICICI (trusted bank) and park surplus money in high-interest banks. (ICICI Bank Savings Interest Rate vs Other Banks)
Example: How Much You Can Earn (ICICI Bank Savings Interest Rate vs Other Banks)
Let’s compare interest on ₹5 lakh balance across banks:
- ICICI Bank @ 2.50% → ₹12,500 per year.
- Bank of Baroda @ 4.25% → ₹21,250 per year.
- IDFC FIRST Bank @ 7.00% → ₹35,000 per year.
- RBL Bank @ 6.75% → ₹33,750 per year.
- AU Small Finance Bank @ 6.75% → ₹33,750 per year.
Clearly, the difference can be ₹20,000+ annually just by choosing the right bank.
FAQs – ICICI Bank Savings Interest Rate vs Other Banks
Q1. What is the current ICICI Bank savings interest rate in 2025?
👉 2.50% per annum on all balances.
Q2. Do senior citizens get higher savings account rates in ICICI?
👉 No. They earn the same 2.50% as others.
Q3. Which bank offers the highest savings account interest rate in India?
👉 As of September 2025, IDFC FIRST Bank (up to 7%), followed by RBL and AU Small Finance Bank (up to 6.75%).
Q4. Is it safe to keep money in small finance banks for higher interest?
👉 Yes, they are regulated by RBI, and deposits are insured up to ₹5 lakh under DICGC. But for very large balances, people prefer bigger banks for trust.
Q5. Do premium accounts in ICICI or HDFC give higher interest?
👉 No. Premium accounts give lifestyle benefits, not higher savings interest.
Final Thoughts
When comparing ICICI Bank Savings Interest Rate vs Other Banks, here’s the reality:
- ICICI’s 2.50% rate is standard among large Indian banks.
- If you value trust, safety, and digital convenience, ICICI is a solid option.
- If you want higher returns, challenger banks like IDFC FIRST, RBL, and AU SFB can give you up to 7%—almost 3X what ICICI offers.
💡 Smart strategy: Keep your emergency fund in ICICI (safe, easy to access), and invest surplus funds in higher-interest accounts or short-term deposits with other banks. This way, you balance safety + higher earnings.
