IDFC First Bank cuts savings account interest rates by up to 2%; check details

IDFC First Bank has lowered its savings account rates, introducing new slabs for small and medium balance categories. The new rates will come into effect on January 9, 2026. The interest rates and slabs remain unchanged for higher balance accounts.

With the revision, interest rates for small and medium-sized accounts will see a reduction of up to 200 basis points (bps). However, even after the new rates come into effect, IDFC Bank will continue to offer one of the highest savings account interest rates among mid-sized lenders.

IDFC First Bank’s new savings account rates

The savings rate for balances between ₹5 lakh and ₹10 lakh now stands at 5%, down from 7% before, and the rate for balances above ₹10 lakh (below ₹5 crore) is now reduced to 6.5%, down from 7% before.

Higher balances continue to earn the same interest rate as before, like deposits above ₹10 crore and up to ₹25 crore earn 6% and deposits above ₹25 crore and up to ₹100 crore earn 5%. Interest for balances above ₹100 crore also remains unchanged at 4%.

• The interest is credited monthly.
• The revised interest rates apply to domestic, NRE and NRO savings accounts.

The interest on savings will be calculated on a progressive basis, which means that different portions of the balance will earn interest at different rates according to the applicable slabs.

For example:

Let’s say your account balance is ₹10 lakh, ₹1 lakh will earn 3% interest, and the remaining ₹9 lakh will earn 5% interest. If it were ₹12 lakh, the 21 lakh (above ₹10 lakh) would earn 6.5% interest.

Similarly, if your account balance is ₹1 crore, the interest earned would be 3% on ₹1 lakh, 5% on ₹9 lakh and 6.5% on ₹90 lakh.

Other mid-sized banks, like the YES Bank and IndusInd Bank, offer around 2.5% on savings account balances below ₹1 lakh. Check and compare interest rates before opening a savings account.