| TL;DR: SBI offers a 2.70% savings account interest rate in 2026 with zero minimum balance. It’s ideal for safety, UPI, and emergency funds. Use Auto-Sweep for better returns; SBI savings accounts are not for long-term wealth growth, go for investments like Jar App. |
If you have an account in SBI, chances are it wasn’t chosen after comparing the SBI savings account interest rates with other banks like HDFC or ICICI. It was chosen because it’s trusted, familiar, and everywhere.
When every rupee is expected to work harder, the SBI savings account interest rate deserves a closer look.
Is it still worth investing your money here, or is it just a safe holding zone? Let’s break it down, numbers first, opinions later.
Learn all about savings accounts in India.
The rate reality check (2026 update)
If you’re here for a straight answer to “What is the SBI savings account interest rate?”, here it is:
As of 2026, the State Bank of India savings account interest rate follows a simple tiered structure:
| Account balance | State Bank of India interest rates on savings account (p.a.) |
| Up to ₹10 crore | 2.70% |
| Above ₹10 crore | 3.00% |
This means your SBI bank savings account interest rate is 2.70% per year.
Zero minimum balance: Does SBI finally have Nil MAB?
Yes, in 2026, regular SBI savings accounts come with zero minimum balance requirements.
For years, SBI account holders were more worried about monthly average balance (MAB) penalties than the savings account interest rate.
That problem is now gone.
Translation:
- Your balance can drop to ₹0 without penalty
- No surprise deductions at month-end
- No emails to “maintain MAB”
For middle-class households, students, retirees, and anyone using SBI for daily expenses, this is a big win.
Yes, the State Bank of India savings account interest rate stays modest, but the freedom from penalties makes SBI far more practical as an everyday, stress-free account.
Zero minimum balance doesn’t mean zero charges
SBI is lenient, but not free.
Here’s what most account holders end up paying for:
- Debit card annual maintenance: ₹200-₹800 + GST, depending on the card variant
- Cheque books: First 10 cheque leaves free in a financial year, then 10 Leaf Cheque Book at Rs 40/-+GST and 25 Leaf Cheque Book at Rs 75/-+GST
- Other service charges: Things like duplicate statements, branch-based requests, or SMS alerts can add up over time
Paired with a 2.70% SBI savings account interest rate, these charges matter more.
| Pro tip: If you mainly use UPI and net banking and avoid cheques, SBI stays cost-efficient. If you rely heavily on physical banking tools, just be aware. |
Want better returns? Enter SBI’s Auto-Sweep
The SBI savings account interest rate is low, but you don’t have to settle for it. Let’s see how:
Say you keep ₹1 lakh in your SBI account.
If your Auto-Sweep limit is ₹35,000, here’s what happens:
- ₹35,000 stays in your savings account at 2.70%
- The remaining ₹65,000 automatically moves into an FD
- Fixed SBI deposit interest rates earn around 6.5%+
- Need money? SBI breaks the FD in parts and credits it back instantly
This Multi-Option Deposit Scheme (MODS) under Auto-Sweep (Savings Plus) setup lets your extra money earn FD returns while staying accessible.
YONO, branches & service: The day-to-day SBI experience
Most SBI users use the YONO app for routine things and the branch when something actually matters.
YONO handles the basics well:
- Balance checks and transfers
- UPI and bill payments
- Online deposits
- Easy submission of Form 15G/15H to avoid excess TDS
For senior citizens, SBI also offers doorstep banking, which is genuinely useful when branch visits aren’t easy.
Are there any cons to SBI’s customer service experience?
SBI’s digital experience isn’t flawless. App slowdowns and server downtime still happen, especially during peak hours. Branch visits can mean queues, paperwork, and waiting, which private banks handle better.
Check out the best banks in India if you’re considering other savings accounts.
Cost vs returns: What you’re really trading off
The SBI savings account interest rate is not trying to compete. At 2.70%, it’s clearly behind private banks offering 3.5%-4%.
What SBI offers instead is predictability:
- No minimum balance penalties
- No pressure to “opt in” to complex products
- Stable systems for salary credits, pensions, and UPI usage
This is the real decision point:
Are you optimising for safety and convenience or for returns?
SBI is built for the former, not the latter.
Final verdict: Who should open an SBI savings account?
The SBI savings account interest rate in 2026 stays at 2.70%, which makes one thing clear: this account is built for safety, not growth.
SBI works best as a secondary “safety fund” account for emergency money, UPI, salary credits, pensions, and everyday payments. Add Auto-Sweep, and idle cash can earn FD-level returns without losing access.
What it’s not meant for is wealth creation. If you treat SBI as a holding zone, it does its job well.
If you want to grow your money, look for modern investment options like digital gold through the Jar App.
FAQs about SBI savings account interest rate 2026
1. What is the PPF interest rate at SBI?
The PPF interest rate (SBI) is set by the government and is the same across all banks. SBI only acts as a platform for the PPF scheme of SBI, not the rate-setter.
2. SBI savings account interest calculated daily or monthly?
The SBI savings account interest rate is calculated on the daily closing balance and credited quarterly. This means even short-term balances earn interest.
3. Does SBI offer different savings interest rates for senior citizens?
No. The State Bank of India savings account interest rate is the same for all customers, including senior citizens. However, unlike the State Bank of India deposit interest rate.
4. Can the SBI savings account interest rate change during the year?
Yes. Like all banks, SBI can revise its savings interest rate based on RBI policy or internal decisions, though changes are usually infrequent.
