For accounts with a balance of more than Rs 1 lakh but less than Rs 2 crore, IDFC First Bank has reduced the interest rate on savings accounts from 6% to 5%. The new rates will take effect from today i.e. May 1st 2021. The private lender previously offered a savings interest rate of 7%, which was reduced to 6% in February 2021. The bank has now reduced it even further, keeping it at 4% for accounts with a balance of Rs 2 crore to Rs 10 crore, 5% for balance up to Rs 2 crore, and 4.5 percent for balance of Rs 1-10 lakh. Savings account yields are higher at some mid-sized private banks and small finance banks. Fincare Small Finance Bank, for example, offers 5% interest on balance up to Rs 1 lakh. For balance up to Rs 1 lakh there are also some banks providing higher interest rates now such as RBL Bank - 4.75%, ESAF Small Finance Bank - 4%, Suryoday Small Finance Bank and Ujjivan Small Finance Bank with a similar interest rate of 4%. Whereas for the amount above Rs 1 lakh Equitas and Ujjivan Small Finance Bank is offering the best interest rate of 7%. And 6.25% is provided by Fincare and Suryoday Small Finance Bank. There are top public and private sector banks which are currently promising higher interest rates on savings accounts. For instance among the public sector banks Punjab National Bank is offering 3 to 3.5% interest rate, whereas among the private sector banks RBL Bank is offering the highest interest rate of 4.75 to 6.5%.
IDFC Bank Savings Account Interest Rates
Savings account interest will be determined on a progressive basis, as per the below listed rate slabs.