IDFC First Bank Reduces Rate on Savings Account: Options for Retail Depositors

Taking inspiration from its counterpart, the bank now has different levels. It will offer 4% for those who maintain balances below ₹1,000,000. Those who maintain a balance between ₹1 lakh and under ₹10 lakh, the interest rate will be 4.5%. The highest interest rate of 5% is granted to those who maintain a balance between ₹10 lakh and below ₹2 crores.

So which banks now offer higher interest rates on a savings account?

Large private sector banks, such as ICICI Bank, offer an interest rate of 3 to 3.5%. Public sector banks also offer similar rates. Some, like the State Bank of India, offer even lower rates of 2.7%.

Some medium-sized private banks and small finance banks offer better savings account rates.

FOR SALES UP TO RS 1 LAKH

Fincare Small Finance Bank: 5%

RBL Bank: 4.75%

Small ESAF corporate bank: 4%

First IDFC bank: 4%

Suryoday Small Finance Bank: 4%

Ujjivan Small Finance Bank: 4%

AU Small Financial Bank: 3.5%

Equitas Small Finance Bank: 3.5%

Jana Small Finance Bank: 3.5%

Bandhan Bank: 3%

FOR SALES OVER RS 1 LAKH

Equitas Small Finance Bank: 7%

(Above ₹1 lakh and up ₹2 crore)

Ujjivan Small Finance Bank: 7%

(Above ₹1 lakh and up ₹25 millions)

Fincare Small Finance Bank: 6.25%

(Above ₹1 lakh and up ₹5,000,000)

Suryoday Small Finance Bank: 6.25%

(Above ₹1 Lakh and up ₹10,000,000)

Bandhan Bank: 6%

(Above ₹1,000,000 ₹10 crore)

Jana Small Finance Bank: 6%

(Above ₹1 lakh and up ₹10,000,000)

RBL Bank: 6%

(Above ₹1 lakh and up ₹10,000,000)

Small ESAF Corporate Bank: 5.5%

(Above ₹1 lakh and up ₹10,000,000)

AU Small Financial Bank: 5%

( ₹1 lakh less than ₹5,000,000)

First IDFC bank: 4.5%

( ₹1 lakh and below ₹10,000,000)

Keep in mind that most banks have a tiered system for offering interest rates. Take the example of IDFC Bank. If your account balance is ₹25,000, the interest to be paid will be 4% on the total ₹25,000.

If the account balance is ₹5 lakh, the bank will calculate the interest payable in two parts. He will pay 4% interest on ₹1,000,000. The remaining amount ( ₹4 lakh) will earn 4.5% interest.

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