RBI Rate Cut Impact: Savings Account Interest Rate Revised By IDFC First Bank; Now Earn Up To 7.25% Returns

Following the RBI's decision to lower the repo rate by 25 basis points to 6.25% on February 7th, which marked a dramatic shift in monetary policy after five years, IDFC First Bank has updated its interest rates on savings accounts, which is a good step for investors. According to the bank's official website, the latest and most recent interest rates for IDFC First Bank savings accounts go into effect on February 20, 2025, after which customers can receive interest rates of up to 7.25% on their balance.

IDFC First Bank Savings Account Interest Rates

On savings accounts with balances up to Rs 5 lac, the bank is offering an interest rate of 3.00% and on those with balances of Rs 5 lac to Rs 10 lac, IDFC First Bank is now offering an interest rate of 7.25%. IDFC First Bank is now offering an interest rate of 4.50% on savings account balance of Rs 100 cr to Rs 200 cr and 3.50% on savings account balance of more than Rs 200 cr.

"Interest payable on Savings account will be calculated on a progressive basis, as per the table in the rate slabs described below. Interest is credited monthly in your savings account. For description of "progressive" with examples, please refer to notes after the table," mentioned IDFC First Bank on its website.

Balance (Rupees)	Rate of Interest (% p.a.) (Progressive)
Uo to Rs 5 lac	3.00%
Over Rs 5lac to 10lac	5.00%
Over Rs 10 lac to 100 cr	7.25%
Over Rs 100 cr to 200 cr	4.50%
More than Rs 200 cr	3.50%
Source: Bank Website

For Example:

1. In case your account balance with us is Rs. 25,000, the interest payable to you will be 3% p.a. on the entire Rs. 25,000.
2. In case your account balance with us is Rs. 6 lacs, the interest payable to you will be 3% p.a. on Rs. 5 lac and 5% p.a. on Rs. 1 lac.
3. In case your account balance with us is Rs. 1 crore, the interest payable to you will be 3% p.a. on Rs. 5 lac, 5% p.a. on Rs. 5 lac, and 7.25% p.a. on Rs. 90 lac

"IDFC FIRST Bank Savings Accounts are a superior choice with attractive features, such as Zero Fee Banking on all services, including IMPS, NEFT, RTGS, ATM withdrawals, and SMS alerts-ensuring your savings grow without unexpected costs. Plus, with higher interest rates of up to 7.25% p.a., credited monthly, your financial goals will be more attainable," the bank has mentioned on its website.

"The IDFC FIRST Bank Savings Account offers unmatched convenience with Zero Fee Banking on all common savings account services, including fund transfers, ATM withdrawals, Debit Card, DD issuance, chequebook reissuance and more. This feature is available on both Rs 25,000 AMB and Rs 10,000 (AMB) account variants. Certain specialised charges may apply, such as fees for non-maintenance of AMB (Average Monthly Balance)," IDFC First Bank mentioned on its website.

Depending on the account balance, IDFC FIRST Bank's savings account provides attractive interest rates that range from 3% annually to an amazing 7.25% annually. For the greatest return, interest is credited monthly after being computed daily on the closing balance. According to groundbreaking research on the legality of savings account service costs by the Moneylife Foundation and IIT Bombay, IDFC FIRST Bank is a "Class Apart." Because of its unparalleled Zero Fee Banking guarantee, IDFC FIRST Bank was placed in the 'A category' of this groundbreaking research, "Benchmarking Reasonableness of Service Charges by Banks in India."