Canara Bank has recently revised its savings account interest rates, with the new structure taking effect from September 5, 2026. This adjustment prompts a closer look at how these rates stack up against other major public sector banks like State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB), particularly for customers holding substantial savings balances.
Canara Bank's Latest Savings Rates
Under Canara Bank's updated policy, domestic, NRE, and NRO savings accounts offer interest rates ranging from 2.50% to 4% annually, depending on the total account balance. However, for a savings balance of Rs 50 lakh, the applicable interest rate remains at 2.50% per annum. This rate applies to balances from Rs 50 lakh up to just below Rs 100 crore.
Depositors with significantly higher balances will see improved rates: 2.65% for Rs 100 crore to below Rs 300 crore, 3.10% for Rs 300 crore to below Rs 500 crore, and a maximum of 4% for balances of Rs 2,000 crore and above.
How Major Banks Compare for Rs 50 Lakh
For individuals with a savings balance of Rs 50 lakh, the interest rate landscape across leading banks shows a consistent trend.
State Bank of India (SBI)
SBI, the largest public sector bank, currently offers a uniform interest rate of 2.50% per annum on all savings account balances, irrespective of the amount. This means a Rs 50 lakh deposit with SBI would also yield approximately Rs 1.25 lakh in annual interest, matching Canara Bank.
Punjab National Bank (PNB)
Punjab National Bank also provides 2.50% interest on savings fund account balances up to Rs 100 crore. Similar to Canara Bank and SBI, a Rs 50 lakh deposit at PNB would therefore earn the same annual interest.
Bank of Baroda (BoB)
Bank of Baroda offers 2.50% interest on outstanding savings balances ranging from Rs 1 lakh to below Rs 50 crore. Consequently, a Rs 50 lakh balance at BoB would also attract an equivalent 2.50% interest rate.
What Rs 50 Lakh Depositors Should Know
For customers maintaining a savings balance of Rs 50 lakh, the comparison reveals a clear pattern: Canara Bank, SBI, PNB, and Bank of Baroda all offer an identical 2.50% annual interest rate. This translates to an approximate annual interest earning of Rs 1.25 lakh on a Rs 50 lakh deposit, before taxes and assuming the balance remains constant.
Significant variations in interest rates among these banks typically emerge only for much larger deposit tiers, often in the hundreds or thousands of crores, which are generally not applicable to most retail savers. Therefore, for a Rs 50 lakh savings portfolio, the choice between these major banks based purely on interest rates is unlikely to present a notable advantage.