Savings account interest rates for senior citizens in July 2026: SBI, BOB, HDFC, Post Office, PNB, others compared

A large number of senior citizens still keep a significant amount in their savings account (SB) with the bank. While the fixed deposit (FD) interest rate is locked for the entire tenure, savings account interest rates are dynamic. Banks frequently revise them based on the policies of the Reserve Bank of India, inflation and other liquidity factors.

This article compares the savings account interest rates as applicable at the time of writing on July 8, 2026 for senior citizens across multiple banks and the Post Office.

Post Office Savings Account: This government-backed savings account (SB) offers a 4% rate of interest per annum. Interest on the scheme is calculated based on the minimum balance between the 10th of the month and end of the month. Additionally, no interest is allowed in a month if balance at any time between 10th and the last day of the month falls below ₹500.

State Bank of India (SBI): The state-run lender across all account balances is offering a standard rate of interest of 2.5% per annum.

Bank of Baroda (BOB): The leading bank offers a tiered interest rate structure on its savings account, ranging from 2.5-4.75% per annum.

Punjab National Bank (PNB): PNB, similar to BOB, offers interest rate in the range of 2.5-4.25% based on the outstanding balance amount. Higher account balance is rewarded with a higher interest rate.

HDFC Bank: The savings bank account at HDFC Bank offers a uniform rate of 2.5% per annum across all account balances.

ICICI Bank: Similar to HDFC Bank, ICICI Bank also offers 2.5% interest rate on its savings account, irrespective of the balance amount.

Axis Bank: For balance less than ₹2,000 crore, savings account with Axis Bank earns 2.5% interest rate. For a higher balance of ₹2,000 crore and above, the applicable rate of interest will be overnight MIBOR + 1.01%. For balances of ₹2,000 crore and above, the MIBOR-linked rate will be applicable on the entire balance above ₹1 lakh, said the bank on its website.

Kotak Mahindra Bank: The bank offers a 2.5% interest rate on savings accounts. The periodicity of interest payment at the bank is quarterly, meaning you will be paid interest on 30th June, 30th September, 31st December & 31st March each year.