Savings Account Interest Rates in Nepal 2026 — Full Bank Comparison

Opening a savings account is the first step in Nepal's banking system — and the interest rate you earn matters more than most people realise. Over a decade, the difference between a 3% and a 6% savings rate on NPR 5 lakh compounds to over NPR 1 lakh in extra interest.

This guide covers every bank class, how rates are set, what TDS means for your take-home return, and how to find the best rate right now.

Current Savings Rates by Bank Class (June 2026)

Nepal Rastra Bank categorises licensed banks into four classes. Savings rates differ significantly across classes — because finance companies and development banks compete harder for deposits than commercial banks do.

Source: Bank official websites, verified by Byajdar on 20 June 2026. Rates are for regular individual savings accounts; premium/priority savings accounts may differ.

How Are Savings Rates Set in Nepal?

Nepal Rastra Bank (NRB) does not directly fix savings deposit rates — but it influences them through two levers:

1. Policy Rate (Bank Rate): NRB's lending rate to commercial banks. When NRB tightens, banks raise deposits to attract liquidity.
2. Cash Reserve Ratio (CRR): Banks must keep a fraction of deposits with NRB. A high CRR reduces lendable funds, pushing banks to offer higher deposit rates.

Individual banks then set their own rates based on their credit-deposit (CD) ratio, liquidity needs, and competitive positioning. A bank with a high CD ratio (close to the 90% NRB ceiling) must attract more deposits — and offers higher rates to do so.

Regular vs. Premium Savings Accounts

Most Nepali banks offer at least two tiers:

• Regular Savings: Minimum balance NPR 500–5,000. Rate: 2.5–4% (commercial banks), 4–7% (development banks and finance companies).
• Premium / High-Yield Savings: Minimum balance NPR 25,000–500,000. Rate: typically 0.5–1.5% above the regular rate. Names vary — "Priority Savings", "Super Savings", "Growth Savings".
• Remittance Savings: Exclusively for remittance recipients. Some banks (NMB, NABIL, Himalayan) offer a 0.25–0.50% bonus over the standard rate to attract foreign-remittance inflows.

TDS on Savings Interest — What You Actually Earn

Nepal's Income Tax Act 2058 requires banks to deduct 5% TDS on interest before paying it to you. On top of that, if your total annual interest income exceeds NPR 25,000, you pay an additional 15% tax.

The TDS certificate is issued by your bank at year-end and can be used to claim a tax credit when filing your annual return.

Finance Companies vs. Commercial Banks — The Real Trade-off

Finance companies (Class C) offer savings rates 2–4 percentage points higher than commercial banks. But there are real differences to understand:

• Deposit Insurance: Nepal's Deposit & Credit Guarantee Corporation (DCGC) insures deposits up to NPR 5 lakh per depositor per institution — covering both commercial banks and finance companies equally.
• NPA levels: Finance companies tend to have higher non-performing loan ratios. This is priced into their higher deposit rates — they're paying more to attract funds because they lend at higher risk.
• Liquidity: Smaller finance companies can be slower to process large withdrawals. For emergency savings, a commercial bank is safer operationally.

Practical strategy: Keep your emergency fund (3–6 months of expenses) at a commercial bank for easy access. Put long-term liquid savings (12+ months) in a high-rate finance company or development bank.

Which Savings Account Should You Open?

It depends on your goal:

• Safety + access (emergency fund): Large commercial bank — NABIL, HBL, Nepal Bank Limited. Sacrifice 1–2% for peace of mind and branch access.
• Maximum rate: Class C finance company with a solid track record — ICFC Finance, Reliance Finance, Goodwill Finance. Rates 5–7%, DCGC insured up to NPR 5 lakh.
• Middle ground: Class B development bank — Muktinath Bikas Bank, Garima, Shangrila. Rates 4.5–5.5%, more branch coverage than finance companies.
• Remittance income: Choose a bank with a dedicated remittance savings account and a bonus rate — NMB, NABIL, and Himalayan run active remittance programs.

How to Open a Savings Account in Nepal (2026)

1. Choose a bank using the Byajdar savings comparison.
2. Visit the nearest branch (or use the bank's mobile app for digital KYC).
3. Bring: citizenship certificate or passport + 2 passport-size photos + initial deposit (minimum balance).
4. Most banks complete account opening in 30–60 minutes. Some (NMB, Global IME, NIC Asia) allow fully digital account opening via their apps.

Frequently Asked Questions

What is the current savings account interest rate in Nepal?

As of June 2026, savings rates range from 2.5% (commercial banks) to 7% (finance companies) per annum. Byajdar updates these figures daily from each bank's official rate sheet.

Which bank gives the highest savings rate in Nepal?

Finance companies (Class C) offer the highest savings rates — typically 5–7%. Among commercial banks, Laxmi Sunrise Bank and Himalayan Bank are among the top payers at 4%. Check the live comparison for today's top rate.

Is savings interest taxable in Nepal?

Yes — 5% TDS is deducted at source on all savings interest. If total interest income exceeds NPR 25,000 in a year, an additional 15% income tax applies under the Income Tax Act 2058.

Can I have savings accounts at multiple banks?

Yes. There is no restriction. Many Nepali savers keep accounts at two or three institutions — one commercial bank for daily transactions and one finance company or development bank for a higher-yield holding account.

How often is savings interest paid?

Most banks pay quarterly (Baishakh, Shrawan, Kartik, Poush), though some pay monthly or at the end of the financial year. Check your bank's terms when opening the account.

Are NRN savings accounts available?

Yes. Non-Resident Nepalis can open NRNR (Non-Resident Nepali Rupee) or foreign-currency accounts at most Nepali banks. Interest rates are equivalent to regular savings rates, and the interest is freely repatriable.