IDFC First Bank slashes savings account interest rates—here's what changes
IDFC First Bank is lowering its savings account interest rates for domestic and NRI customers effective from January 9, 2025.
Rates drop by up to 2% for certain balance slabs, with the top rate now at 6.5% per year (down from 7%).
If your balance is above ₹10 crore, your rate stays the same.
What are the new rates?
Here's how it breaks down: balances up to ₹1 lakh get 3% per year; between ₹1-10 lakh, it's 5%; and from ₹10 lakh up to ₹10 crore, you'll earn 6.5%.
Bigger accounts see further drops—₹10-25 crore gets 6%, ₹25-100 crore drops to 5%, and anything above ₹100 crore earns just 4%.
How does this affect your earnings?
Interest is calculated daily and credited monthly using a progressive slab system.
For example, if you have ₹5 lakh in your account at the new rate (5%), you'll get about ₹2,055 in monthly interest—less than before.
While there's no TDS on savings interest, keep in mind it's still taxable (with deductions up to ₹10k under Section 80TTA or up to ₹50k for seniors under Section 80TTB).