Which bank gives 7% interest for a savings account?

Where Can You Still Earn 7% Interest on Savings?

With most traditional banks offering modest returns, finding a savings account that yields around 7% interest may sound too good to be true—but it’s still possible, if you know where to look.

While major public sector banks typically cap savings rates below 3.5%, several smaller and private banks are stepping in with more attractive offers. Small Finance Banks, in particular, have been aggressive in attracting deposits. Institutions like Unity Bank, Equitas SFB, AU SFB, and Suryoday SFB regularly offer interest rates between 5% and 7.5%—sometimes hitting the coveted 7% mark—depending on the deposit amount and account type.

These higher rates are often structured in slabs, meaning the benefit applies to balances above a certain threshold. For instance, accounts with balances over ₹1 lakh may qualify for the top-tier rate. It’s also worth noting that these rates can change frequently, so staying updated is key.

On the private banking side, institutions like RBL Bank and IDFC FIRST Bank have also introduced competitive tiered interest structures. While base rates might start modestly, customers with larger balances can earn closer to 7%, especially if they maintain qualifying deposits.

Of course, it’s important to read the fine print. Higher interest doesn’t always mean better value—consider factors like minimum balance requirements, service charges, and ease of access. While these rates are tempting, they’re often incentives to grow deposits in relatively new or niche institutions, so assessing financial stability and customer service matters too.

For savers looking to maximize returns without stepping into riskier investments, these banks offer a rare opportunity to earn significantly more on idle cash. Just remember: what looks like a great rate today might shift tomorrow—so act wisely, and keep an eye on the long-term picture.