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Savings Account
Savings Account Interest Rates 2025

Interest Rates on Savings Account

Enjoy up to 5.5% interest on your DBS Bank Savings Account — plus 40+ smart features and seamless digital banking. Open your account online in minutes and start growing your money effortlessly. Banking that fits your life, not the other way around.

DBS Bank Savings Account Interest Rates

Savings Account Interest Rate (Domestic)

Balance in Savings Account

Interest Rate Per Annum

Up to Rs.2L

2.75%

Above Rs.2L and up to Rs.5L

3.25%

Above Rs.5L and up to Rs.50L

5.50%

Above Rs.50L

4.00%

The interest rate has been revised as above effective from 9th May 2025.


Note:

  1. Interest will be paid at quarterly rests or on any other rests as the Bank may decide from time to time.
  2. Interest will be calculated on the daily available balance as required by the regulator or as a result of the bank’s own decision.
  3. The savings account interest rates are subject to change from time to time at the discretion of the Bank and/or in accordance with directives from the RBI.
  4. Customers are advised to review the latest bank savings interest rates to stay updated on the highest interest rate savings account offers available.

llustration: (Domestic)

If the balance in the Domestic savings account is 1 Crore 50 Lakhs, then the Savings Account Interest will be calculated as follows:

Savings Interest Calculation Rates Applied as per the below Slab
Up to Rs 2 Lakh: 2.75% Up to Rs 2 lakh 2.75%
Rs 2 lakh - Rs 5 lakhs: 3.25% Above Rs 2 lakh and up to Rs.5 Lakhs 3.25%
Rs 5 lakhs - Rs 50 lakhs: 5.50% Above Rs.5 Lakhs and Upto Rs.50 Lakhs 5.50%
Rs 50 lakhs - Rs 1Cr: 4.00% Above Rs 50 lakhs and up to Rs.1Cr 4.00%
Remaining Rs.50 lakhs: 4.00% Above Rs.1 Crore 4.00%

Formula to Calculate the Savings Account Interest Rate

At DBS Bank, the interest rate on your Savings account is calculated based on the available closing balance each day. The formula is:

Savings Account Interest = (Daily Closing Balance x Interest Rate x Number of Days) ÷ 365

Alternatively, you can use a savings account interest rate calculator to easily get the estimated interest earnings on your savings.

TDS on Savings Account Interest

Interest earned on savings accounts is taxable, but banks do not deduct TDS (Tax Deducted at Source) on this income. Instead, it is added to your total income and taxed as per your applicable income tax slab.

Tax Exemptions for Individuals

  • Under Section 80TTA, individuals and Hindu Undivided Families (HUFs) can claim a deduction of up to ₹10,000 on savings account interest in a financial year.
  • If the interest earned exceeds ₹10,000, the amount above this limit becomes taxable.

Tax Benefits for Senior Citizens

  • Senior citizens are eligible for a higher exemption under Section 80TTB.
  • They can claim a deduction of up to ₹50,000 per year on interest income earned from savings accounts, fixed deposits, and recurring deposits.

Benefits of a DBS Bank Savings Account

DBS Bank Savings Account does more than just storing your money. It’s designed to make everyday banking simple, secure and rewarding.

  • Earn Competitive Interest
    Enjoy attractive savings account interest rates that help your money grow while staying easily accessible.
  • Convenient Access
    Manage your funds anytime for your digital savings account through the DBS digibank app and Internet banking. From transfers to bill payments, everything is just a few taps away.
  • Paperless and Instant Account Opening
    Open your account digitally with minimal documentation, no branch visits and a smooth verification process.
  • Safe and Secure Banking
    With advanced security features and real-time transaction alerts, your savings stay protected.
  • Smart Expense Tracking
    Get insights on your spending and savings habits with in-app tools that help you stay financially aware and in control.
  • No Hidden Charges
    Transparent terms with no unnecessary fees ensures you keep more of what you earn.

Whether you're looking for a high-interest savings account or just want a simple way to save and spend, DBS Bank offers solutions that suit your lifestyle and financial goals.

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Frequently Asked Questions

How Does Savings Account Interest rate work?

Savings account interest is the return you earn on the money parked in your account. It is calculated daily on the closing balance and credited to your account on a quarterly or yearly basis, or as decided by the bank.

How are the savings account interest rates calculated?

Savings account interest rates are calculated using the formula:
Interest = (Daily Balance × Rate × Number of Days) ÷ 365
Banks typically follow the daily balance method and credit interest quarterly.

What factors affect the savings account interest rate?

Several factors can influence bank savings interest rates, such as RBI regulations, bank policies, market conditions, and the type of account. Premium or high-interest savings account options may offer better rates.

Is the interest rate on a savings account fixed or variable?
The interest rate is usually variable. banks may revise the savings account interest rates from time to time based on internal decisions or RBI directives.
How often is the interest compounded on a savings account?
Most banks, including DBS Bank, credit savings account interest per annum, although interest is calculated daily
How can I maximise the interest earned on my savings account?
You can maximise earnings by maintaining a healthy balance and choosing high interest savings account like that of DBS Bank Savings account. It offers competitive savings account interest rates.
Can the savings account interest rate change over time?
Yes, the interest rate may be revised occasionally based on RBI guidelines or internal bank decisions. Regularly check DBS Bank’s official updates and ensure your account balance qualifies for the highest applicable interest rate.
Is the Savings Account interest income taxable, and how should I declare it?
The interest earned on Savings Account deposits is taxable in India per your income tax slab rate. You must declare it under the sub-header ‘income from other sources’ while filing your returns.
Can I claim deductions on Savings Account interest income? If yes, how?
Yes, you may claim a deduction on the interest earned on your Savings Account. Under Section 80TTA of the Income Tax Act of India, 1961, you may claim a deduction if your annual interest income from all deposits, does not exceed ₹ 10,000.
I am a senior citizen. Do I qualify for additional tax deductions on Savings Account interest rates?

As a Resident Indian above 60 years of age, you can avail of deductions of up to ₹ 50,000 p.a., on interest earned from various types of deposits, including interest on bank Savings Accounts and bank and post office fixed deposits. You can avail of this deduction over and above the ₹ 1.5 lakhs deduction permitted under Section 80C of the IT Act.

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